Nova AgriTech Limited IPO Closed

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IPO date 23 Jan 2024 – 25 Jan 2024
Listing date 31 Jan 2024
Price range 39 – 41
Minimum order quantity 365
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What does Nova AgriTech Limited do?

Nova Agritech Limited is an agri-input manufacturer focusing on soil health management, crop nutrition, and crop protection products. Their approach is tech-based and farmer-driven, offering ecologically sustainable and nutritionally balanced products developed through research and development. They have diverse product categories, including soil health management, crop nutrition, biostimulants, biopesticides, integrated pest management, new technologies, and crop protection.

As of November 30, 2023, the company has received 720 product registrations across different categories. They operate through a substantial dealer network of approximately 11,722 dealers, with a presence in 16 states of India and 2 in Nepal. Additionally, they have entered into agreements in Bangladesh, Sri Lanka, and Vietnam, pending necessary permissions.

The company generates a significant portion of its revenue from product distribution in the southern states of Andhra Pradesh, Karnataka, and Telangana. Their manufacturing facilities, including warehousing, are located in Telangana.

The company is involved in a farmer outreach program called Nova Kisan Seva Kendra program (NKSK), which educates farmers on crop management practices. They have a dedicated team of NKSK Coordinators and arrangements with Kisan Mitras and Kisan Sevaks across various states. Nova Agritech Limited also plans to import and distribute Technicals, partnering with Taiwanese and Chinese entities for the sale and formulation of specific agricultural products.

What is the issue size of Nova AgriTech Limited IPO?

The entire public offer of the company is a fresh issue of Equity Shares aggregating up to ₹ 112 Crores and an offer for sale (OFS) of up to 0.78 crore Equity Shares from the existing shareholders.

Financial information and other valuation metrics (in crores)

Particulars As of March 31, 2023 As of March 31, 2022 As of March 31, 2021
Total Assets 180.78 160.30 147.44
Total revenue 210.93 185.61 160.92
Profit after taxes 20.50 13.70 6.30
EBITDA 38.71 27.77 17.79

Risk factors to consider:

Government policy changes or a decrease in subsidies and incentives, for the agriculture sector may have negative impacts on the business and financial performance.

The company’s logo is currently facing opposition. A third party has filed an objection against the trademark registration and if the company fails to defend against the opposition, the trademark may be canceled, leading to a loss of usage rights.

The company, along with its subsidiaries, promoters, and directors, is currently engaged in legal proceedings and potential litigation. Unfavorable outcomes in these cases could result in liabilities or penalties, posing a risk to the company’s business and impacting its financial results.

The business is susceptible to the impact of weather conditions, with seasonal fluctuations and unfavorable weather patterns potentially causing adverse effects on its overall performance, operational results, and financial health.

The agricultural input industry, being a specialized sector, encounters numerous challenges. Failing to address and overcome these challenges could negatively impact the business and financial stability of the company.

Schedule of Nova AgriTech Limited IPO

Issue Period 23th January to 25th January 2024
Deadline for accepting UPI mandate  Until 5 PM on the issue closing day
Finalization of Allotment January 29, 2024
Initiation of Refunds January 30, 2024
Credit of Shares January 30, 2024
Date of Listing January 31, 2024
Mandate end date February 09, 2024
Anchor Investors Lock-In End Date (50% of the investment) February 24, 2024
Anchor Investors Lock-In End Date (Remaining investment) April 24, 2024

Note: Given that the above schedule is tentative, it should be noted that the anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares, and 90 days after for the remaining portion.

How to apply to the Nova AgriTech Limited IPO?

You can apply for the Nova AgriTech Limited IPO using any supported UPI app by following two steps:

  • Enter your bid on Kite
  • Accept the UPI mandate on your phone

On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.

How to check the allotment status for the Nova AgriTech Limited IPO?

You can check the allotment status for the Nova AgriTech Limited IPO on the website of the Registrar and Transfer agent.