Nova Agritech Limited, a crop protection player, made a strong debut on January 31, 2024, with its shares listed at a 36.5% premium over the IPO price. The company’s shares opened at Rs 56 on the BSE and Rs 55 on the NSE, marking a robust listing for the Hyderabad-based firm.
The IPO, which opened for subscription on January 23 and closed on January 25, comprised a fresh issue of 2.73 crore shares worth Rs 112 crore and an offer-for-sale of 77.58 lakh equity shares. The overall subscription for the issue came in at an impressive 109.37 times, led by substantial interest from non-institutional bidders, securing an exceptional 224.08 times bids for their allocation.
Heading: Nova Agritech IPO: Key Highlights
- IPO opened for bidding between January 23 and January 25, with a price band of Rs 39-41 per share
- The IPO raised Rs 143.81 crore through its primary stake sale, including a fresh share sale of Rs 112 crore and an offer-for-sale of up to 77.58 lakh equity shares
- The overall subscription for the issue came in at an impressive 109.37 times
- Non-institutional bidders secured an exceptional 224.08 times bids for their allocation
- Qualified institutional bidders (QIBs) subscribed 79.31 times, while retail investors witnessed a subscription of 77.12 times during the bidding process
- The company is headquartered in Hyderabad and focuses on soil health, plant nutrition, and crop protection
- The book-running lead managers of the IPO were Keynote Financial Services and Bajaj Capital, while Bigshare Services acted as the registrar for the issue
Subheading: Nova Agritech IPO: Performance and Recommendations
- The company’s shares listed at a 36.5% premium over the IPO price
- The IPO received a strong response from investors, with high net-worth individuals (HNIs) remaining at the forefront, buying 227.19 times the allotted quota
- Retail investors picked up 77.12 times the portion set aside for them, while the part reserved for qualified institutional buyers was booked 79.31 times
- The IPO’s success was due to the company’s reasonable valuation and potential for future success, according to analysts at Stoxbox
- Despite the strong debut, the company’s H1 of FY24 indicates static performance, emphasizing the highly competitive nature of the Agri-input segment in which it operates
- Analysts at Mehta Equities suggest booking profit, while Stoxbox recommends holding
Bullet Points: Nova Agritech IPO: Key Facts
- IPO opened for bidding between January 23 and January 25
- Price band: Rs 39-41 per share
- IPO raised Rs 143.81 crore
- Fresh share sale: Rs 112 crore
- Offer-for-sale: up to 77.58 lakh equity shares
- Overall subscription: 109.37 times
- Non-institutional bidders: 224.08 times bids for their allocation
- QIBs subscription: 79.31 times
- Retail investors subscription: 77.12 times
- Company headquartered in Hyderabad
- Focus: soil health, plant nutrition, and crop protection
- Book-running lead managers: Keynote Financial Services and Bajaj Capital
- Registrar: Bigshare Services
Conclusion: Nova Agritech’s IPO marked a strong debut in the crop protection sector, with shares listed at a 36.5% premium over the IPO price. The IPO received a strong response from investors, with high net-worth individuals (HNIs) remaining at the forefront. Despite the strong debut, the company’s H1 of FY24 indicates static performance, emphasizing the highly competitive nature of the Agri-input segment in which it operates. Analysts at Mehta Equities suggest booking profit, while Stoxbox recommends holding.
