Nova Agritech IPO set the price band at Rs 39-41 for the IPO to raise Rs 144 crore.

Nova Agritech IPO has set a price band of Rs 39-41 a share for its public issue which will open for subscription on January 22 and close on January 24, while the anchor book will open on January 19.

Keynote Financial Services Ltd, Bajaj Capital and Bigshare Services are leading the issue. Nova Agritech IPO is a combination of fresh shares worth Rs 112 crore and an offer for sale (OFS) of 77.58 million shares by Nutalapati Venkatasubbarao, who holds 11.97 percent stake in the company.

In the upper band of the issue price, the company plans to raise about 143.81 crore. Worth Rs 267.33 crore, the company has 84.27 percent stake in Nova Agritech.

The company, specializing in soil health, plant nutrition, and protection products, reported strong financials for FY23. Consolidated net profit rose 49.7 percent year-on-year to Rs 20.5 crore, while revenue rose 13.4 percent to Rs 210.6 crore. Strong operating performance led to a 39.3 percent increase in EBITDA to Rs 38.7 crore, resulting in a 342 bps margin expansion to 18.4 percent for the quarter.

Nova Agritech reported a consolidated net profit of Rs 10.4 crore on revenue of Rs 103.22 crore for the six months ended September FY24. The company holds 720 product registrations across various categories. Telangana contributed significantly to its business, accounting for 76 percent in the first half of FY24.

The IPO allocation includes 50 percent for qualified institutional buyers, 15 percent for non-institutional investors, and 35 percent for retail investors. The allocation base will be finalized by January 25, with trading beginning on January 30.