Nova AgriTech shares to make market debut today; grey market premium signals listing pop

Nova AgriTech is set to make market debut on Wednesday and if one were to go by grey market trends, the crop nutrition player is likely to deliver a decent listing pop, even as it has seen erosion of premium in the unofficial market. Last heard, Nova AgriTech was commanding a premium of Rs 13 per share in the grey market, hinting at a listing gain of around 30-32 per cent over its issue price of Rs 41. The premium once stood at Rs 23 apiece.

Nova AgriTech is well-placed to take advantage of the considerable growth opportunities in the Indian agricultural sector, Dhruv Mudaraddi, a Research Analyst at Stoxbox. The government's commitment to boosting farm productivity, along with various initiatives, sets the stage for continuous expansion, he said adding that Nova's expansion plans are in sync with the industry's positive trajectory.

"Nova AgriTech boasts two key qualitative advantages. Its well-established distribution network across cities and a robust farmer outreach program ensure a high degree of acceptance for its products. We believe the company is an attractive proposition considering its reasonable valuation and advise investors who have received allotment to hold shares from a medium-term perspective," he said.

The Nova AgriTech's initial public offering (IPO) ran from January 23 to January 25. The IPO price band was set at Rs 39-41 per share. The company garnered Rs 143.81 crore through its primary route, including a fresh share sale of Rs 112 crore and an offer for sale (OFS) of up to 77.58 lakh equity shares.

The overall subscription for the issue reached an impressive 109.37 times, driven by substantial interest from non-institutional bidders, securing an exceptional 224.08 times allocation. Qualified institutional bidders (QIBs) subscribed 79.31 times, while retail investors' portion witnessed a subscription of 77.12 times during the bidding process.

Established in May 2007 and headquartered in Hyderabad, Nova AgriTech is primarily focused on three segments: soil health, plant nutrition, and crop protection. Bajaj Capital and Keynote Financial Services served as the book running lead managers for the Nova AgriTech IPO, and Bigshare Services acted as the registrar for the issue.

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