MUMBAI, 17 JANUARY, 2024 (GPN): Manufacturer of agricultural inputs, Nova Agritech Limited offers soil health management and crop nutrition focused on tech-based farmer driven solution approach, as well as its own crop protection products that are ecologically sustainable and are nutritionally balanced, has fixed the price band at RS 39 to Rs 41 per Equity Share for its maiden initial public offer.  The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Monday, January 22, 2024, for subscription and close on Wednesday, January 24, 2024. Investors can bid for a minimum of 365 Equity Shares and in multiples of 365 Equity Shares thereafter.

The issue with a face value of Rs 2 per equity share consists of a fresh issue of equity shares worth up to Rs 112 crore and an offer-for-sale (OFS) of up to 77,58,620 equity shares by Nutalapati Venkatasubbarao.

Out of the proceeds from the fresh issuance, an amount of Rs. 14.20 crore will be utilised for Investment in its subsidiary, Nova Agri Sciences Private Limited for setting-up a new formulation plant, Rs 10.49 crore for funding Capital Expenditure by the Company, towards expansion of its existing formulation plant, Rs 26.65 crore for funding of working capital requirement, Rs 43.36 for Investment in its subsidiary, Nova Agri Sciences Private Limited for funding working capital requirements and general corporate purposes.

The company was founded in 2007 by Sambasivarao Yeluri and Kalyana Chakravarthy with an objective to become a one-stop solution provider for the farming community.  It manufactures, distributes and markets a wide range of product categories consisting of soil health management products; crop nutrition products; bio stimulant products; bio pesticide products; Integrated Pest Management (IPM) products; and crop protection products 

As on November 30, 2023, the Company has received a total of 720 product registrations comprising of 7 registrations in the soil health management category, 176 registrations in the crop nutrition category, 4 registrations in bio pesticide category, 7 registrations under Technical Indigenous Manufacture and 526 registrations in the crop protection category. Further, it has applied for 14 registrations for new products across various categories in the name of Nova Agri Sciences Private Limited (NASPL) and 22 new registrations in the name of Nova Agritech Limited (NATL).

It has a total dealer network comprising of approximately 11,722 dealers out of which approximately 6,769 dealers are active to whom it has distributed and sold its products during the current financial year. Its dealer network is currently spread across 16 states of India. It has also entered into  marketing, distribution and supply agreements with certain third parties in Bangladesh, Sri Lanka and Vietnam and are currently awaiting the necessary permission to start business in these jurisdictions.

Nova Agritech’s revenue from operations increased by 13.47% to Rs 210.55 crore for the financial year 2022-23 from Rs 185.56 crore for the financial year 2020-21, primarily on account of an increase in business volumes on the back of technical import registrations, foraying into new states like Tamil Nadu and consolidation of business in existing states namely, Telangana, Andhra Pradesh and Karnataka. Profit after tax increased by 49.69% to Rs 20.49 crore for the financial year 2022-23 from Rs 13.69 crore for the financial year 2021-22.

For the six months ending September 30, 2023 revenue from operations stood at Rs 103.22 crore and profit after tax stood at Rs 10.38 crore.

Keynote Financial Services Limited and Bajaj Capital Limited are the book running lead managers to the issue.

Note: 

Issue Size of the IPO based on the upper and lower end of the price band

	Fresh	OFS (77,58,620 equity shares)	Total
Lower Band (@Rs 39)	Rs 112 crore	Rs 30.26 crore	Rs 142.26 crore
Upper Band (@Rs 41)	Rs 112 crore	Rs 31.81 crore	Rs 143.81 crore

RHP: https://keynoteindia.net/wp-content/uploads/2024/01/Nova-Agritech-Limited-RHP-IPO.pdf