The initial public offer (IPO) by Nova AgriTech will open for public subscription on Monday, January 22, 2024. The company has fixed the IPO price band at Rs 39-41 per share and suggested a lot size of 365 shares. The three-day bidding process for the issue will conclude on Wednesday, January 24. Hyderabad-based Nova AgriTech manufactures products that help farmers grow crops better. The company, incorporated in May 2007, mainly focuses three segments namely soil health, plant nutrition and crop protection. The products are manufactured using environmental friendly technology. The company is looking to raise Rs 143.81 crore via primary offering at the upper end of price band, which includes a fresh share sale of Rs 112 crore and an offer-for-sale (OFS) of more than 77.58 lakh equity shares by Nutalapati Venkatasubbarao, amounting to Rs 31.81 crore. The net proceeds from the fresh issue will be utilised towards investment in the subsidiary, Nova Agri Sciences for setting-up a new formulation plant; funding capital expenditure in the company towards expansion of the existing formulation plant; and general corporate purposes. The company manufactures, distributes and markets a broad range of product categories, including soil health products, crop nutrition products, biostimulants, biopesticides, integrated pest management products, new technologies and crop protection products. Its subsidiary Nova Agri Sciences is currently responsible for the production of crop protection products. Nova AgriTech reported a net profit of Rs 10.38 crore with a total revenue of Rs 103.24 crore for the quarter ended on September 30, 2023. The company clocked a profit-after-tax (PAT) 20.49 crore with a revenue of Rs 210.93 crore for the financial year ended on March 31, 2023. The company has reserved half of the net offer or 50 per cent of shares for the qualified institutional bidders (QIBs), while the quota for non-institutional investors (NIIs) has been reserved at 15 per cent. The remaining 35 per cent of the shares will be allocated to retail investors. Keynote Financial Services and Bajaj Capital are the book running lead managers of the Nova AgriTech IPO, while Bigshare Services is the registrar for the issue. Shares of the company will be listed on both BSE and NSE, with January 30, 2024 as the tentative date of listing.
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