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Nova Agritech Raises Rs.43 Crores Ahead of its IPO

CIO Insider Team | Saturday, 20 January, 2024
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Days before its initial public offering (IPO), producer of agricultural products Nova Agritech Ltd gained slightly more than Rs 43 crore from anchor investors.

According to a circular posted on the BSE website, the company gave anchor investors 1.05 crore equity shares at a price of Rs 41 each.

The total transaction size has been estimated at Rs 43.14 crore at this pricing.

The following domestic and foreign institutional investors have been allocated shares: AG Dynamic Funds limited, Saint Capital Fund, Neomile Growth Fund, Quantum-State Investment Fund, and others.

Public subscription for the Rs 144-crore first share sale will begin on January 22 and end on January 24. For the offering, the business has established a price range of Rs 39 to Rs 41 per share.

In addition to an offer-for-sale (OFS) component of 77.58 lakh equity shares by shareholder Nutalapati Venkatasubbarao, who holds an 11.9 percent ownership in the company, the IPO consists of a fresh issue of equity shares valued up to Rs 112 crore.

The proceeds of the new offering, which total Rs 14.20 crore, will be used to invest in its subsidiary Nova Agri Sciences in order to establish a new formulation facility. Additionally, Rs 10.49 crore will be used to finance capital expenditures by Nova Agritech in order to expand its current formulation plant.

Additionally, it will use Rs. 26.65 crore to finance Nova Agritech's working capital needs and Rs. 43.36 crore to finance an investment in Nova Agri Sciences. Additionally, a percentage will be applied to general business needs.

According to a circular posted on the BSE website, the company gave anchor investors 1.05 crore equity shares at a price of Rs 41 each.

It is projected that the first public offering will raise Rs 143.81 crore at the upper end of the price range.

The company was founded in 2007 and produces, sells, and uses a broad variety of products, including integrated pest management (IPM), crop nutrition, biostimulant, biopesticide, and items for soil health management.

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