Nova Agritech IPO Rescheduled for Subscription, Grey Market Premium at +20

The Nova Agritech IPO subscription, initially planned to open on Monday, January 22, has been rescheduled and will now be open for subscriptions from Tuesday, January 23 until Thursday, January 25. This rescheduling was due to a public holiday in India celebrating the inauguration of the Ram Temple in Ayodhya. The Nova Agritech IPO is priced in the range of ₹39 to ₹41 per equity share of the face value of ₹2. The lot size for the IPO is 365 equity shares and is in multiples of 365 equity shares thereafter.

Nova Agritech, a manufacturer of agricultural inputs specializing in crop protection, crop nutrition, and soil health management, has promoters such as Malathi S, Kiran Kumar Atukuri, Yeluri Family Trust, Suraksha Agri Retails (India) Private Limited, among others. Their combined shareholding as of January 12, according to the Red Herring Prospectus, stands at 84.27%.

The Nova Agritech IPO, consisting of a fresh issue of ₹112 crore and an offer-for-sale (OFS) of 7,758,620 equity shares by the selling shareholder Nutalapati Venkatasubbarao, is valued at ₹143.81 crore. The net proceeds from the IPO will be utilized for various purposes including investment in subsidiary Nova Agri Sciences Private Limited and financing of working capital needs.

Keynote Financial Services Ltd and Bajaj Capital Limited are the lead managers for the Nova Agritech IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. The grey market premium (GMP) for Nova Agritech is currently at +20, indicating a premium of ₹20 in the grey market. This suggests that the estimated listing price of Nova Agritech shares could be ₹61, a 48.78% increase from the IPO price of ₹41.

Nova Agritech, with its diverse range of branded products for crop and soil health, has a well-established distribution network and a comprehensive farmer outreach program. The company has shown consistent revenue growth over the last three years, with impressive financial metrics such as ROE of 32.1%, ROA at 11.3%, and PAT margins of 9.7%. However, the company operates in a sector highly dependent on climatic conditions and faces competition in the agri-input industry.

Considering all the factors, experts recommend applying for the Nova Agritech IPO for potential listing benefits. Investors are advised to verify the information and seek expert advice before making any investment decision.