Nova Agritech IPO: Issue subscribed 33 times, HNI portion booked 71x on day 2

Fonebox Retail Limited SME IPO: The price band for the offer has been fixed at Rs 66-Rs 70 per share.

Nova Agritech’s Rs 143.8 crore IPO was subscribed 33.82 times on January 24, the second day of bidding. Retail investors bid 36.19 times, high net-worth individuals (HNI) picked 71.19 times and qualified institutional buyers (QIB) bought 1.12 times of the allotted quota.

The issue will close on January 25 and the price band has been fixed at Rs 39-41 per share. The IPO consists of a fresh issue of 2.73 crore shares worth Rs 112 crore and an OFS of 77.58 lakh shares worth Rs 31.81 crore. The promoters of the company are Suraksha Agri Retails (India), Malathi S and Kiran Kumar Atukuri.

Also Read: Nova Agritech IPO: Should you subscribe to Rs 143.8-crore issue?

Nova Agritech raised Rs 43.14 crore ahead of the IPO from four institutional investors on January 19. AG Dynamic Funds is the biggest investor amongst them, buying nearly Rs 13 crore equity shares in the company, while Neomile Growth Fund - Series I, Saint Capital Fund, and Quantum-State Investment Fund picked more than Rs 10 crore worth of shares each.

The fresh issue proceeds worth Rs 14.20 crore will be used for investment in subsidiary Nova Agri Sciences for setting up a new formulation plant, Rs 10.49 crore for funding capital expenditure by Nova Agritech and towards expansion of its existing formulation plant.

Also Read: Nova Agritech IPO: 10 things to know before subscribing to Rs 143.8 crore issue

The company will also use Rs 26.65 crore for funding the working capital requirements of Nova Agritech and Rs 43.36 crore for investment in Nova Agri Sciences’ working capital requirements.

The book-running lead managers for the issue are Keynote Financial Services and Bajaj Capital while Bigshare Services is the registrar.

Also Read: Nova Agritech IPO: Company raises Rs 43.14 crore via anchor book

Nova Agritech is an agri-input manufacturer offering soil health management, crop nutrition, and crop protection products focused on a tech-based farmer-driven solution approach. The company has a total dealer network comprising approximately 11,722 dealers.