Nova AgriTech Limited IPO  - Complete Overview

 Established in 2007 in Hyderabad, Nova AgriTech Limited began its journey to assist farmers in growing better crops. The company prioritises soil health, plant nutrition, and crop protection, utilising technology to produce eco-friendly and nutritious solutions tailored to farmers' needs.

Offering a diverse range of products, Nova Agritech focuses on soil health management, crop nutrition, biostimulants, biopesticides, integrated pest management (IPM), new technologies, and crop protection. Their subsidiary, Nova Agri Sciences, specifically handles crop protection products.

As of January 31, 2023, Nova Agritech boasts 629 product registrations across soil health, plant nutrition, biopesticides, and crop protection categories. The company actively engages with farmers through a program featuring 13 Kisan Mitras, 253 Kisan Sevaks, and 32 NKSK Coordinators, all with degrees in Agricultural Sciences.

Nova Agritech's sales team, consisting of 215 members, manages brand sales, distribution, and product promotion. Notably, 450 crop protection products are registered under Nova Agri Sciences Private Limited. The company has established a robust dealer network spanning 16 states in India and has agreements in Bangladesh, Sri Lanka, and Vietnam.

The below chart state the broad category of products manufactured by the the company :

Nova AgriTech Limited IPO Overview

Nova AgriTech Limited IPO date is slated to be open for subscription from January 23, 2024, to January 25, 2024. This BSE NSE IPO follows a book-built-issue IPO.

Nova AgriTech Limited IPO price is fixed at Rs. 39 to Rs.41 per share.  

The total issue size of this IPO amounts to Rs.143.81CR. The company has reserved 50% for institutional investors, 15% for non-institutional investors, and 35% for retail investors.

Nova AgriTech Limited IPO timetable (Tentative):

Nova AgriTech Limited IPO Details

Nova AgriTech Limited IPO Lot Details 

Nova AgriTech Limited IPO Reservation

Company Financial

In FY 23 as of September 30, the company experienced growth in total assets, a decrease in revenue, and an increase in net worth compared to previous periods.

(Amount in Crore)

Revenue Distribution State-Wise

Telangana remains the primary contributor to the company's revenue, followed by Andhra Pradesh, Karnataka, and other states.       

( in % age)

Revenue By operations

The company's revenue comes mainly from operations, complemented by additional sources such as other operating income and miscellaneous income.     

(amount in Lakhs)

The objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Invest in the subsidiary, Nova Agri Sciences Private Limited, to establish a new formulation plant.

• Allocate capital for the Company's Capital Expenditure to expand the current formulation plant.

• Provide funds for the company's working capital needs.

• Invest in the subsidiary, Nova Agri Sciences Private Limited, to support its working capital requirements.

• Utilise funds for general corporate purposes.

Promoters and Management of Nova AgriTech Limited IPO:

1. Suraksha Agri Retails (India) Private Limited.

2. Malathi S.

3. Kiran Kumar Atukuri.

Nova AgriTech Limited IPO Lead Managers:

• Keynote Financial Services Ltd

• Bajaj Capital Limited

Peers of Nova AgriTech Limited IPO

Evaluation

Dividend Policy

The company did not distribute dividends in previous fiscal years. The possibility of future dividend payments hinges on factors such as profits, historical dividend patterns, capital requirements, legal constraints, and other pertinent considerations assessed by our Board.

IPO's Strengths

➢ One stop solution for soil health management, crop nutrition, bio stimulant, bio pesticides, Integrated Pest Management (IPM) and crop protection through diversified branded product portfolio.

➢ Established distribution network across various geographies through many dealers.

➢ Strengthening farmer outreach through Nova Kisan Seva Kendra.

➢ Technology driven product development and marketing.

➢ Focus on ecologically sustainable and nutritionally balanced products.

➢ Experienced Management Team and Promoters.

➢ Well Equipped Research & Development facility.

IPO's Weaknesses

➢ Dependency on brand strength and reputation, with potential negative impact on market recognition and trust if not maintained.

➢ Marketing products primarily through a dealer network, and challenges in managing, expanding, and maintaining healthy relations with dealers.

➢ Success in managing the introduction of new products is crucial to our business.

➢ Economic growth slowdown in India or other operating countries may affect our operations.

➢ Vital importance of obtaining/renewing product registrations for our business.

➢ Lack of long-term agreements with raw material suppliers poses a risk.

➢ Potential revenue loss due to lower manufacturing levels.

➢ Operational risks related to the manufacture, usage, and storage of hazardous substances.

➢ Vulnerability to negative effects of changes in government rules and policies applicable to the agri-input industry.

IPO GMP Today

The Latest GMP of Nova AgriTech Limited IPO is Rs. 13.

Conclusion

Nova AgriTech Limited presents itself as a significant player in the agricultural sector, focusing on innovative and eco-friendly solutions for farmers. With a diverse product portfolio, a robust distribution network, and a commitment to technology-driven development, the company aims to address various aspects of soil health, crop nutrition, and pest management. The IPO details, including the opening date, closing date, and issue size, are yet to be finalised. Investors are encouraged to stay updated on the latest developments and reviews to make informed decisions.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

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