Nova Agritech's IPO is set to open for subscription on January 22 and bidding for the issue will close on January 24. The price band is expected to be announced in coming days.
The anchor book of the issue will be opened for a day on January 19, a day prior to the IPO opening.
The IPO is a mix of a fresh issuance of shares worth Rs 112 crore, and an offer-for-sale (OFS) of 77.58 lakh equity shares by Nutalapati Venkatasubbarao. The only public shareholder in the agri-input manufacturer, Venkatasubbarao will be exiting the company by selling entire personal shareholding in the OFS.
Promoters hold an 84.27 percent stake in Nova Agritech.
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The company that offers soil health management, crop nutrition and crop protection products, has recorded healthy financial performance in the past years with consolidated net profit growing 49.7 percent on-year to Rs 20.5 crore for the year ended March FY23 and revenue increasing 13.4 percent to Rs 210.6 crore during the same period.
Profitability was boosted by strong operating performance. Its EBITDA (earnings before interest, tax, depreciation and amortisation) during FY23 increased by 39.3 percent to Rs 38.7 crore compared to previous year with margin expansion of 342 bps at 18.4 percent for the quarter.
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It has registered consolidated net profit at Rs 10.4 crore on revenue of Rs 103.22 crore in the six months period ended September FY24.
Nova Agritech has received a total of 720 product registrations comprising of seven registrations in the soil health management category, 176 in the crop nutrition segment, four in bio pesticide business, seven under technical indigenous manufacture and 526 registrations in the crop protection category.
Though it has a dealer network across 16 states in India, the major business comes from Telangana (55 percent in FY23 and 76 percent in 1HFY24). Further, Andhra Pradesh state contributed 14.7 percent to its business, Karnataka 6.7 percent and the remaining 24 percent from the rest of states for FY23.
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Meanwhile, the company has reserved half of its IPO size for qualified institutional buyers, 15 percent for non-institutional investors (i.e. high networth individuals), and the remainder 35 percent shares are for retail investors.
Nova Agritech will finalise the basis of allotment of IPO shares by January 25 and successful investors will get the company's equity shares in their demat accounts by January 29.
Trading in its equity shares will commence on the BSE and NSE, with effect from January 30.
Keynote Financial Services and Bajaj Capital are the merchant bankers to the issue.
This will be the fourth initial public offering in the current month, after Jyoti CNC Automation, Medi Assist Healthcare Services, and Epack Durable.
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