The difficulty, valued at Rs 144 crore, consists of a contemporary fairness problem of Rs 112 crore and an offer-for-sale (OFS) of 77.58 lakh shares. The IPO subscription window is at present open and can shut on January 25.
The Nova Agritech IPO attracted robust curiosity from each retail and Excessive Web Price Particular person (HNI) traders, attaining full subscription on the primary day of bidding. As of Tuesday, the general subscription reached 5.4 instances, with the retail class oversubscribed at 8.1 instances. The Non-Institutional Buyers (NII) portion additionally acquired bids 6.1 instances the allotted shares.Within the unlisted market, Nova Agritech’s GMP is at present at Rs 20. They’re prepared to pay a premium of practically 70% in comparison with the higher value band, in line with an ET report.
Pre-IPO funding and investor curiosity
Previous to the IPO opening, Nova Agritech secured Rs 43 crore from anchor traders, together with Quantum- State Funding Fund and Neomile Development Fund, indicating a optimistic outlook from institutional traders.
Nova Agritech IPO overview: Analysts’ perspective
Analysts have largely beneficial subscribing to the Nova Agritech IPO, citing the corporate’s sturdy monetary efficiency in a aggressive sector. Nova Agritech has demonstrated a formidable Return on Fairness (ROE) of 32.1% and maintains sturdy Revenue After Tax (PAT) margins at 9.7% as of FY23.
Stoxbox, a monetary evaluation entity, mentioned that the corporate’s snug asset turnover ratio and environment friendly asset utilization as indicators of sustained profitability. With a Value-to-Earnings (PE) ratio of 12.3x, primarily based on the annualised diluted H1FY24 EPS, the valuation seems comparatively enticing in comparison with trade friends.
Nova Agritech IPO value band and lot measurement
The IPO is priced within the vary of Rs 39-41 per share, and traders can bid for 365 shares in a single lot. Allocation distribution is about at 50% for certified institutional patrons (QIBs), 15% for non-institutional traders (NIIs), and 35% for retail traders.
About Nova Agritech
Nova Agritech stands out as an agri-input producer providing complete options for soil and crop well being. Its diversified branded product portfolio has garnered 720 registrations throughout numerous classes, together with soil well being administration, crop vitamin, biopesticides, and crop safety. The corporate’s efficient advertising and marketing technique and a powerful presence throughout geographies place it for sustained progress.
Monetary efficiency and operations
As of November 30, 2023, Nova Agritech recorded a strong product portfolio with vital income contributions from its subsidiary, Nova Agri Sciences (NASPL), specialising in crop safety merchandise.
In FY23, the corporate witnessed a 13% YoY improve in income to Rs 210 crore, with PAT surging by 50% to Rs 20.48 crore. For the six months ending September 2023, income reached Rs 103 crore, and revenue stood at Rs 10.3 crore.
Key gamers within the providing
Keynote Monetary Providers and Bajaj Capital are serving because the book-running lead managers for the IPO, whereas Bigshare Providers is appointed because the registrar to the supply.
