Nova AgriTech Limited, a pioneering company dedicated to empowering farmers with innovative crop solutions, is set to make its debut in the stock market through an Initial Public Offering (IPO). The IPO, featuring a fresh issue of Rs 112.00 crore and an offer for sale of 0.78 crore shares, opens for subscription on January 22, 2024, and concludes on January 24, 2024. With the allotment expected on Thursday, January 25, 2024, the tentative listing date on BSE and NSE is set for Tuesday, January 30, 2024.
Key IPO Details:
- Issue Size: Fresh issue of Rs 112.00 crore and an offer for sale of 0.78 crore shares
- Subscription Period: January 22, 2024, to January 24, 2024
- Allotment Date: Thursday, January 25, 2024
- Tentative Listing Date: Tuesday, January 30, 2024, on BSE and NSE
- Price Band: ₹39 to ₹41 per share
- Face Value: ₹2 per share
Company Overview:
Founded in Hyderabad in May 2007, Nova AgriTech collaborates closely with farmers to develop tailored solutions for their needs. The company specializes in manufacturing, distributing, and marketing a diverse range of agricultural products, including soil health products, crop nutrition products, bio-stimulants, bio-pesticides, integrated pest management (IPM) products, new technologies, and crop protection products. The subsidiary, Nova Agri Sciences Private Limited, manages the production of crop protection products. The company holds an impressive count of 629 product registrations spanning diverse categories
Fundamental Analysis:
Revenue Growth & Profitability:
- Yearly revenue showed positive growth, increasing from ₹185.61 crore in March 2022 to ₹210.93 crore in March 2023.
- Yearly Profit After Tax (PAT) also witnessed an upward trend, rising from ₹13.69 crore in March 2022 to ₹20.49 crore in March 2023.
Assets & Borrowings:
- Assets demonstrated a steady increase, moving from ₹160.30 crore in March 2022 to ₹180.78 crore in March 2023.
- Total borrowings experienced an uptick, rising from ₹64.27 crore in March 2022 to ₹70.96 crore in March 2023.
While the revenue and PAT growth from March 2022 to March 2023 appears promising, the potential rise in borrowings raises a cautious note.
