Nova Agritech Limited is coming up with an IPO with a fresh issue and an offer for sale. Fresh Issue is for INR 140 crores, and the company intends to invest in its subsidiary to meet capital and working capital requirement. In the offer-for-sale segment, the company intends to sell 77,58,620 shares.
Nova Agritech Limited IPO – Important Details
| Nova Agritech IPO Date | January 23, 2024 to January 25, 2024 |
| Nova Agritech IPO Listing Date | January 31, 2024 |
| Nova Agritech IPO Price | INR 39 to 41 per share |
| Nova Agritech IPO Lot Size | 365 Shares |
| Nova Agritech IPO Total Issue Size | Fresh issue of INR 1400 crores and Offer for sale of 77,58,620 equity shares |
| Nova Agritech IPO Basis of Allotment | January 29, 2024 |
| Nova Agritech IPO Initiation of Refunds | January 30, 2024 |
| Nova Agritech IPO Credit of Shares to Demat | January 30, 2024 |
| Nova Agritech IPO Issue Type | Book Built Issue IPO |
| Nova Agritech IPO Listing At | BSE, NSE |
Nova Agritech Limited IPO – Company Profile
Nova Agritech Limited is an agri-input manufacturer offering soil health management, crop nutrition, and crop protection products focused on a tech-based farmer-driven solution approach, wherein it mainly offers ecologically sustainable and nutritionally balanced products based on our R&D.
The company manufactures, distributes, and markets a wide range of product categories consisting of (a) soil health management products, (b) crop nutrition products, (c) biostimulant products, (d) biopesticide products, (e) Integrated Pest Management (IPM) products; (f) new technologies; and (g) crop protection products.
As of January 31, 2023, we have received a total of 629 product registrations comprising 7 registrations in the soil health management category, 168 registrations in the crop nutrition category, 4 registrations in the bio pesticide category, and 450 registrations in the crop protection category.
Nova Agritech Limited IPO Fundamental Analysis
Revenue Growth:
- Yearly revenue increased from ₹16,057.74 lakhs in March 2021 to ₹18,556.77 lakhs in March 2022.
- However, the revenue for the 6 months ending September 2022 is ₹8,165.26 lakhs, which, if annualized (multiplied by 2), suggests a potential decrease in revenue compared to the previous year.
Profitability:
- Profit After Tax (PAT) more than doubled from March 2021 to March 2022, which is a positive sign.
- The PAT for the 6 months ending September 2022 is ₹686.39 lakhs, which if annualized, suggests a decrease compared to the previous year.
Return on Net Worth (RoNW):
- There’s a significant increase in RoNW from 21.41% in March 2021 to 31.69% in March 2022, indicating better profitability from equity.
- The RoNW for September 2022 is not available, which requires further investigation.
Earnings Per Share (EPS):
- The EPS increased from ₹1.00 in March 2021 to ₹2.18 in March 2022 but decreased to ₹1.09 for the 6 months ending September 2022.
Net Asset Value (NAV) per Equity Share:
- There’s a steady increase in NAV per equity share over the periods, indicating a growth in the company’s intrinsic value.
Asset and Liability Management:
- Total assets have been growing steadily, while liabilities have remained relatively stable, which is a good sign.
Summary:
The financials show a mixed picture. The growth in revenue and PAT from March 2021 to March 2022 is positive, but the potential decrease in revenue and PAT for the year ending March 2023 (if the 6-month figures are annualized) could be a concern. The lack of RoNW for September 2022 also requires clarification. It’s essential to consider the company’s long-term sustainability, the competitive landscape, and other macroeconomic factors. Consulting with a financial advisor to understand the risks and rewards better before making an investment decision in the IPO is advisable.
Nova Agritech Limited IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 September 2022 |
| Revenue (₹ in lakhs | 16,057.74 | 18,556.77 | 8,165.26 |
| Equity (₹ in lakhs) | 2942.98 | 4319.11 | 5,008.99 |
| Expenses (₹ in lakhs) | 15,225.53 | 16,716.64 | 7,321.44 |
| Profit and Loss After Tax (₹ in lakhs) | 630.00 | 1368.93 | 686.39 |
| RoNW (%) | 21.41% | 31.69% | NA |
| Diluted EPS only (₹) | 1.00 | 2.18 | 1.09 |
| NAV per Equity Share (₹) | 4.69 | 6.89 | 7.99 |
| Total Assets (in lakhs) | 14743.86 | 16029.77 | 17125.15 |
| Total Liabilities (in lakhs)
|
11,800.88 | 11,710.66 | 12,116.16 |
Nova Agritech Limited IPO Peer Comparison
Nova Agritech Limited exhibits a solid RoNW of 31.69% with moderate income. Best Agrolife and Heranba Industries show stronger market positions with higher incomes and EPS. Madras Fertilizers faces potential financial distress with negative RoNW and NAV per share.
| Company | Type | Total Income (₹ in lakhs) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Nova Agritech Limited | Consolidated | 18,561.09 | 2.00 | NA | 2.18 | 2.18 | 31.69% | 6.89 |
| Aries Agro Ltd | Consolidated | 44,394.37 | 10.00 | 9.59 | 10.22 | 10.22 | 5.93% | 172.43 |
| Aimco Pesticides Limited | Consolidated | 31,283.23 | 10.00 | 22.54 | 11.12 | 11.12 | 21.11% | 52.68 |
| Basant Agrotech Limited | Standalone | 44,833.47 | 1.00 | 8.59 | 2.09 | 2.09 | 12.39% | 16.91 |
| Best Agrolife Limited | Standalone | 1,13,962.81 | 10.00 | 26.03 | 38.22 | 38.22 | 27.88% | 132.08 |
| BhagiradhaChemicals & Industries Ltd | Consolidated | 43,651.68 | 10.00 | 22.44 | 43.02 | 43.02 | 18.83% | 227.81 |
| Heranba Industries Limited | Standalone | 1,46,972.30 | 10.00 | 9.44 | 47.25 | 47.25 | 26.46% | 178.55 |
| India Pesticides Limited | Standalone | 72,930.80 | 1.00 | 16.68 | 13.82 | 13.82 | 24.81% | 55.43 |
| Madras Fertilizers Limited | Standalone | 2,33,387.00 | 10.00 | 5.55 | 10.06 | 10.06 | (32.06%) | (31.37) |
| Dharmaj Crop Guard Limited | Standalone | 39,628.80 | 10.00 | 14.09 | 11.62 | 11.62 | 33.79% | 34.40 |
Nova Agritech Limited IPO Objective
Nova Agritech Limited plans to use IPO funds for investing ₹14.20 crores in a new subsidiary plant, allocating ₹10.48 crores for existing plant expansion, and dedicating ₹83.42 crores towards working capital needs for the company and its subsidiary. The remaining funds will be used for general corporate purposes, including IT and business expansion.
- Investment in subsidiary: The company proposes to invest an amount of ₹ 14.20 crores to fund the setting up of a new formulation plant for our subsidiary i.e., Nova Agri Sciences Private Limited.
- Funding capital expenditure of the company: The company proposes to deploy an amount of INR 10.48 crores as capital expenditure towards the expansion of our existing formulation plant.
- Funding of working capital requirement: The operational infrastructure for manufacturing agricultural technology solution products is working capital intensive and involves maintaining higher than normal inventory levels and debtors. The Company proposes to invest ₹ 26.68 crores of the Net Proceeds towards investment for funding its working capital requirement.
- Funding of working capital requirement of the subsidiary: The company manufactures a wide range of product categories consisting of crop protection products such as insecticides, fungicides, herbicides, and plant growth regulators manufactured by Nova Agri Sciences Private Limited (subsidiary). The Company proposes to invest ₹ 56.74 crores of the Net Proceeds towards investment for funding the working capital requirement of its subsidiary.
- General corporate purpose: The company plans to deploy the balance funds towards the general corporate purpose, which is not limited to meeting expenses incurred in the ordinary business such as strategic initiatives including the advancement of information technology, meeting future branches and business expansion, etc.
Nova Agritech Limited IPO Risks And Challenges
Nova Agritech’s IPO entails risks like a significant debt of ₹4,164.16 lakhs, where any repayment default could harm the company. Additionally, credit risks from dealer payment defaults or delays may negatively affect its financial operations. These factors highlight the financial uncertainties in investing in this IPO.
- Risk of non-payment of debt: As of January 31, 2023, our Company’s total outstanding debt was ₹ 4,164.16 lakhs. We have entered into several borrowing facilities of varying terms and tenures. Any kind of default under the terms of any financing agreement will hurt the company’s operations.
- Credit Risk: Any default in payment by the dealers or delay in realizing the receivables may harm the business and financial operation.
Nova Agritech Limited IPO – Industry & Market Potential
The agriculture sector has experienced steady growth in the past two years. As per the Economic Survey 2021-22, the sector is the largest employer of workforce and accounted for a sizeable 18.8% (2021- 22) in Gross Value Added (GVA) of the country. Growth in allied sectors, including livestock, dairying, and fisheries, has also been the major driver of overall growth in the sector.
To ensure that foodgrain production continues to rise with almost the same arable land and an expected increase in population, it becomes important for the Government to encourage farmers to focus on the farm productivity of India to ensure food security.
The Government is working towards doubling farmers income through:
- Constant hike in Minimum Support Prices and
- Agricultural marketing
- Food management
- Food processing sector
- Natural farming
- Promotion of new technologies, such as the usage of drones and other soil testing devices
Nova Agritech Limited IPO – Type of Offer
Nova Agritech’s IPO combines a fresh issue and an offer for sale (OFS).
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 140 Crore. These funds will be used to invest in its subsidiary to meet capital and working capital requirement.
- Offer For Sale (OFS): Existing shareholders, including promoters and early investors, will sell a portion of their stake in the company, intending to sell 77,58,620 shares.
Nova Agritech Limited IPO Offer Size
Nova Agritech Limited is coming up with an IPO with a fresh issue and an offer for sale. Fresh Issue is for INR 140 crores, and the company intends to invest in its subsidiary to meet capital and working capital requirements. In the offer-for-sale segment, the company intends to sell 77,58,620 shares.
Nova Agritech Limited IPO Allotment Structure
The IPO allotment structure for Nova Agritech is planned as follows:
- Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
- Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lakhs.
- Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.
How to apply for a Nova Agritech IPO through Alice Blue?
To apply for the Nova Agritech IPO through Alice Blue, you would typically follow these steps:
- Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Nova Agritech IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for Nova Agritech IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Nova Agritech IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Nova Agritech IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Nova Agritech IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Nova Agritech IPO:
Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Nova Agritech IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Nova Agritech Limited IPO Offer Registrar
The registrar for the Nova Agritech IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Bigshare Services Private Limited
Office No.S6-2, 6th Floor, Pinnacle Business Park
Andheri(East)
Mumbai – 400 093, Maharashtra
Phone: +91 22 6263 8200
Email: [email protected]
Website: www.bigshareonline.com
Nova Agritech India Limited IPO FAQs
1. What is the allotment date of the Nova Agritech India Limited IPO?
The allotment date of Nova Agritech India Limited IPO is January 29, 2024
2. What is the price band of Nova Agritech India Limited IPO?
The price band of Nova Agritech India Limited IPO is INR 39 to 41 per share.
3. What is the size of the Nova Agritech India Limited IPO?
Nova Agritech Limited is coming up with an IPO with a fresh issue and an offer for sale. Fresh Issue is for INR 140 crores, and the company intends to invest in its subsidiary to meet capital and working capital requirement. In the offer-for-sale segment, the company intends to sell 77,58,620 shares.
4. What is the listing date of the Nova Agritech India Limited IPO?
The listing date of Nova Agritech India Limited IPO is January 31, 2024.
