The initial public offering (IPO) of Nova Agritech Limited, a Hyderabad-based agricultural input manufacturer, will open on January 22 to raise ₹112 crore. The price band has been fixed at ₹39-41 for an equity share with a face value of ₹2 each.
The issue will close for subscription on January 24. Investors can bid for a minimum of 365 equity shares and in multiples of 365 equity shares thereafter.
The issue comprises a fresh issue of equity shares worth up to ₹112 crore and an offer-for-sale (OFS) of up to 77.58 lakh shares by Nutalapati Venkatasubbarao.
The company said it would use the proceeds on expansion and for the working capital requirements.
“Out of the proceeds from the fresh issuance, an amount of ₹14.20 crore will be utilised for investment in our subsidiary Nova Agri Sciences Private Limited for setting up a new formulation plant,” the company said on Wednesday.
It would spend ₹10.49 crore on expanding the existing formulation plant and ₹26.65 crore for working capital requirements. It would allocate ₹43.36 for the working capital requirements of its subsidiary Nova Agri Sciences Private Limited.
The 16-year-old company, founded by Sambasivarao Yeluri and Kalyana Chakravarthy, manufactures, distributes, and markets soil health management products; crop nutrition products; bio stimulant products; bio pesticide products; Integrated Pest Management (IPM) products; and crop protection products.
The company registered a revenue of ₹210.55 crore in the financial year 2022-23, showing a growth of 13.47 per cent over the previous year’s revenue of ₹185.56 crore. “The net profit increased by 49.69 per cent to ₹20.49 crore in 2022-23 from ₹13.69 crore in the previous year,” it said.
For the six months ending September 30, 2023, the company clocked a revenue of ₹103.22 crore and a net profit of ₹10.38 crore.