Nova Agritech sets price band at Rs 39-41 for IPO to raise Rs 144 crore

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

Nova Agritech Ltd has set a price band of Rs 39-41 a share for its public issue that will open for subscription on January 22 and close on 24th, while the anchor book will open on January 19.

Keynote Financial Services and Bajaj Capital are the lead managers to the issue.

The IPO is a mix of a fresh issue of shares worth Rs 112 crore and an offer-for-sale (OFS) of 77.58 lakh equity shares by Nutalapati Venkatasubbarao, who holds 11.97 percent in the company.

At the upper band of the issue price, the company plans to raise around 143.81 crore. Valued at Rs 267.33 crore, the company has 84.27 percent stake held with Nova Agritech.

The company, specialising in soil health, crop nutrition, and protection products, reported robust financials for FY23. Consolidated net profit surged 49.7 percent on-year to Rs 20.5 crore, while revenue grew 13.4 percent to Rs 210.6 crore. Strong operating performance drove EBITDA up by 39.3 percent to Rs 38.7 crore, resulting in a 342 bps margin expansion to 18.4 percent for the quarter.

Nova Agritech reported a consolidated net profit of Rs 10.4 crore on a revenue of Rs 103.22 crore for the six months ending September FY24. The company holds 720 product registrations across various categories. Telangana contributes significantly to its business, accounting for 76 percent in the first half of FY24.

The IPO allocation includes 50 percent for qualified institutional buyers, 15 percent for non-institutional investors, and 35 percent for retail investors. Basis of allotment will be finalised by January 25, with trading starting on January 30.