Nova Agritech IPO of ₹112 Crore will open on January 22

Nova Agritech IPO, a Hyderabad-based agricultural inputs manufacturer, will open on January 22 to raise ₹112 crore. The price band has been fixed at ₹39-41 for the equity shares of face value of ₹2 each.

The issue will close for subscription on January 24. Investors can bid for a minimum of 365 shares and in multiples of 365 shares thereafter.

The issue includes a fresh issue of equity shares worth up to $112 billion and an offer for sale (OFS) of up to 77.58 million shares by Nutalapati Venkatasubbarao.

The company said it will use the proceeds for expansion and for working capital needs.

“Proceeds from the fresh issue, amounting to ₹14.20 billion will be used to invest in our subsidiary Nova Agri Sciences Private Limited for setting up a new formula plant,” the company said on Wednesday.

It will take ₹10.49 crore to expand the existing plant and ₹26.65 crore for working capital requirements. It will allocate ₹43.36 crore for the working capital requirement of its subsidiary Nova Agri Sciences Private Limited.

The 16-year-old company, founded by Sambasivarao Yeluri and Kalyana Chakravarthy, manufactures, distributes, and markets soil health management products; plant nutrition products; biostimulant products; Biological pesticide products; Integrated Pest Management (IPM) products; and plant protection products.

The company has registered a revenue of ₹210.55 crore in the financial year 2022-23, showing a growth of 13.47 percent from the previous year’s revenue of ₹185.56 crore. “Net profit increased by 49.69 percent to ₹20.49 billion in 2022-23 from ₹13.69 billion last year,” it said.

For the six months ending September 30, 2023, the company had a revenue of ₹103.22 crore and a net profit of ₹10.38 crore.