Nova Agritech is an agri-input manufacturer that specializes in tech-based farmer-driven solution approaches and offers soil health management, crop nutrition, and crop protection solutions. They primarily offer ecologically sustainable and nutritionally balanced goods based on their R&D. Nova Agritech IPO will hit the stock market in September 2023.
Table of Contents
About Nova Agritech
They produce, sell, and market a broad range of product categories, including items for integrated pest management (IPM), crop nutrition, soil health management, biostimulants, biopesticides, novel technologies, and crop protection. Currently, its subsidiary Nova Agri Sciences Private Limited produces the crop protection products.
They have obtained a total of 629 product registrations, including 7 in the category of soil health management, 168 in the category of crop nutrition, 4 in the category of bio pesticides, and 450 in the category of crop protection.
Additionally, we have submitted applications for 26 new registrations under the name of Nova Agritech Limited (NATL) and 53 new registrations under the name of Nova Agri Sciences (NASPL) for new goods in a variety of categories.
Market
They have a network of dealers totaling about 10,900, of which 6200 are active and to whom they have distributed and sold their products during the current fiscal year.
Currently, its dealer network spans 16 Indian states, including Andhra Pradesh, Telangana, Maharashtra, Karnataka, Madhya Pradesh, Rajasthan, Chhattisgarh, Tamil Nadu, Uttar Pradesh, Odisha, West Bengal, Bihar, Gujarat, Jharkhand, Uttarakhand, Jammu & Kashmir, as well as 02 Nepalese states.
In Bangladesh, Sri Lanka, and Vietnam, they have also engaged into marketing, distribution, and supply agreements with certain third parties, and they are currently seeking the required approval to open for business in these nations.
Their registered office & production facilities are located on a 12.05 acre site at Sy.No.251/A/1 Singannaguda Village, Siddipet District, Telangana.
NKSK
They instruct farmers on various crop management strategies through their Nova Kisan Seva Kendra program (NKSK), which they run as a farmer outreach program. As on January 31, 2023, Their NKSK team is made up of 32 NKSK Coordinators that work for their company and are all agri graduates.
In addition to the NKSK Coordinators, their company has agreements with people from different states who work for them as Kisan Mitras and Kisan Sevaks, meeting the needs of the farmers.
As of January 31, 2023, the Company has direct connections to 253 Kisan Sevaks and 13 Kisan Mitras. Increasing farm yield is the main goal of NKSK by giving farmers access to need-based products, technologies, techniques, know-how, and usage skills.
Nova Agritech IPO
Nova Agritech Limited, headquartered in Gujarat has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 140 crore and 77,58,620 equity shares on 10 February 2023.
The offer includes a fresh issue of 140 Crore and there is offer for sale (OFS) of 77,58,620 equity shares by the promoters mentioned in the DRHP. They are looking for Pre-IPO placement of 25 crore in this issue.
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- Initial Public Offering
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 30-Sep-22 | 31-Mar-22 | 31-Mar-21 | 31-Mar-20 | ||
| Total Assets | 171.25 | 160.30 | 147.44 | 131.57 | |
| Total Revenue | 81.99 | 185.61 | 160.93 | 126.67 | |
| Profit After Tax | 6.86 | 13.69 | 6.30 | 2.98 | |
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2020 | 0.48 | 0.48 | 3 |
| Financial Year 2021 | 1.00 | 1.00 | 2 |
| Financial Year 2022 | 2.18 | 2.18 | 1 |
| Weighted Average | 1.50 | 1.50 | |
| 30 Sep 2022 | 1.09 | 1.09 |
Objects of the Issue
- Repayment/prepayment of debt.
- General corporate objectives and organic growth.
Basis of the offer
Nova Agritech limited feel that the following business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the Offer Price:
- Through a varied array of branded products, there is a one-stop solution for managing soil health, crop nutrition, biostimulants, biopesticides, integrated pest management (IPM), and crop protection.
- Developed distribution network with several dealers operating in diverse geographies.
- Expanding the reach of Nova Kisan Seva Kendra to farmers.
- Product creation and marketing that is technology-driven.
- Put an emphasis on environmentally friendly and nutritionally sound products.
- Promoters and a management team with experience.
- Research and development institution that is well equipped.
Nova Agritech Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 10 | Aries Agro Limited | 9.59 |
| 2 | 10 | Aimco Pesticides Limited | 22.54 |
| 3 | 1 | Basant Agrotech Limited | 8.59 |
| 4 | 10 | Best Agrolife Limited | 26.03 |
| 5 | 10 | Bhagiradha Chemicals & Industries Limited | 22.44 |
| 6 | 10 | Heranba Industries Limited | 9.44 |
| 7 | 1 | India Pesticides Limited | 16.68 |
| 8 | 10 | Madras Fertilizers Limited | 5.55 |
| 9 | 10 | Dharmaj Crop Guard Limited | 14.09 |
- All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2022, which can be found on the Stock Exchanges’ websites.
- The P/E ratio is calculated by dividing the closing market price of equity shares on the BSE on February 24, 2023 by the diluted EPS derived from the peer group company’s annual report for the year ended March 31, 2022.
Nova Agritech IPO Details
| IPO Opening Date | September 2023 |
| IPO Closing Date | September 2023 |
| Issue Type | Book Building |
| Face Value | 2 per share |
| IPO Price | 0 to 0 per equity share |
| Market Lot | – |
| Min Amount | – |
| Listing At | BSE, NSE |
| Issue Size | 140 crore and 77,58,620 equity shares |
| Fresh Issue | 140 crore |
| Offer for Sale | 77,58,620 equity shares |
Nova Agritech IPO Date
Nova Agritech Limited IPO opening date is September 2023, and the closing date is September 2023. The Nova Agritech issue may list in September 2023.
| IPO Opening Date | September 2023 |
| IPO Closing Date | September 2023 |
| Basis of Allotment Date | September 2023 |
| Initiation of Refunds | September 2023 |
| Credit of Shares to Demat Account | September 2023 |
| IPO Listing Date | September 2023 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 50 |
Roughly equivalent
|
| Non Institutional Investor | 15 |
Roughly equivalent
|
| Retail | 35 | Minimum 1 lot based on availability |
Nova Agritech IPO Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Nova Agritech IPO.
Nova Agritech IPO GMP
Nova Agritech Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:
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Check Out the GMP of all Other IPOs
Nova Agritech Limited IPO Review
Nova Agritech Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Nova Agritech IPO is good or bad.
Nova Agritech IPO Risk
- They may not be able to successfully maintain & build their brands, which would be a hindrance to their growth & success.
- They plan to use a portion of the net proceeds of the offer to invest in their subsidiary Nova Agri Sciences Private Limited to set up a formulation plant and pay for capital expenditures made by their company to set up their formulation plant, both of which are subject to risks and uncertainties such as delays, cost overruns, and other factors.
- The success of their business rests on their senior management & promoters. Any senior management attrition rate could have an impact on the expansion of their company.
- For their company, they must acquire and maintain a number of licenses & permits.
Other Threats
- Their Promoter and certain of their Directors may have a stake in entities that operate in industries similar to those of their company. Any conflict of interest that may arise between their business and the operations of such companies could have a negative impact on their business and prospects.
- Their company, subsidiaries, promoters, and directors, are embroiled in legal processes. Any adverse decision in such processes may subject them to liabilities/penalties and may have a negative impact on their business.
- During certain fiscal years, their company had negative cash flow. A sustained negative cash flow could have a significant influence on their business.
- Their company’s debts is governed by agreements that include limits and restrictions on their operations & new funding.
Research and Development
At their manufacturing facilities, they have a dedicated in-house Research and Development (“R&D”) facility, as well as a Quality Control / Quality Assurance facility, to assist knowledge transfer for new products and an on-site incubation center for process improvement.
In order to gain process expertise, innovation, R&D, knowledge transfer, technology transfer, product transfer, credit support, manpower development, etc., they also have partnerships with a number of colleges.
In order to conduct research and development, where they test the effectiveness of their products on a variety of crops, they have leased 66.11 acres of land in Valaparla Village, Andhra Pradesh.
Nova Agritech IPO Brokerage views
Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Nova Agritech IPO:
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
Nova Agritech Limited IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| September 2023 | 1 | |||||
| September 2023 | 2 | |||||
| September 2023 | 3 |
Nova Agritech Limited Management
Nova Agritech limited is managed by a group of executives with vast knowledge of the agricultural industry. A variety of people with professional, technical, and commercial experience in the agriculture industry make up their management team.
Their crew, which has been instrumental in the expansion of their activities, is highly skilled and knowledgeable in the field. People with technical, operational, and business development experience make up the team. They have hired qualified technical and support personnel to oversee crucial operations-related activities.
They will be able to continue to take advantage of future market possibilities and expand into new markets because to the stability of their management team, the industry knowledge they have brought in, combined with the solid client relationships.
Nova Agritech Limited‘ Promoters
- Suraksha Agri Retails (India) Private Limited
- Malathi S
- Kiran Kumar Atukuri
Principal Shareholders’s Holding
| Pre Issue Share Holding | 36.52% |
| Post Issue Share Holding |
Nova Agritech Limited Prospectus
Contact Details
Nova Agritech Limited
Sy.No.251/A/1,
Singannaguda Village, Mulugu Mandal,
Siddipet, Medak, Telangana – 502279
Email:[email protected]
Telephone: +91 84 54253446
Website: www.novaagri.in
Registrar
Bigshare Services Private Limited
1st Floor, Bharat Tin Works Building
Opp. Oasis, Makwana Road, Marol,
Andheri East, Mumbai – 400 059
Telephone no.: +91 022 62638200
E-mail: [email protected]
Website: www.bigshareonline.com
Lead Manager(s)
- Keynote Financial Services Limited
- Bajaj Capital Limited
We hope we are able to answer all your questions about Nova Agritech IPO. If you don’t have a Demat account, open it now with Zerodha best trading app of India.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
Profit must do not engage in grey market trading or facilitate the purchase or sale of IPO forms. We don’t endorse such activities at all. We are sticky against such activities & never advise anyone to trade in grey market at all.
FAQ
Nova Agritech Limited IPO Opening Date?
Nova Agritech Limited IPO will open in September 2023.
Nova Agritech Limited IPO Listing Date?
Nova Agritech Limited IPO will list in September 2023.
Nova Agritech IPO GMP Today?
Nova Agritech IPO Grey Market Premium is INR 0 .
Nova Agritech Limited IPO Allotment Date?
Nova Agritech Limited IPO basis of allotment will be in September 2023.
Lot size for Nova Agritech Limited IPO?
Lot size for Nova Agritech Limited IPO is 0.
