Nova Agritech Ltd IPO
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Get all the details on Nova Agritech Ltd. IPO here!
Overview of Nova Agritech Ltd IPO
IPO Date
22-Jan-2024 to 24-Jan-2024
Face Value
₹2 per share
Price Band
₹39 to ₹41
Lot Size
365 Shares Share
Issue Size
35,075,693 shares shares (aggregating up to )
Listing At
BSE,NSE
Basis of Allotment
25-Jan-2024
Initiation of Refunds
29-Jan-2024
Credit of Shares to Demat
29-Jan-2024
Listing Date
30-Jan-2024
Cut off time for UPI Mandate
24-Jan-2024
Objective of Nova Agritech Ltd IPO
The net proceeds from the issuance of 2,73,17,073 Equity Shares (worth Rs 112 crs) will be utilized for funding capex for setting up a new manufacturing facility (Rs 25 crs), funding working capital requirements (Rs 70 crs) and rest of the funds (Rs 17 Cr) have been kept for General Corporate Purpose.
About Nova Agritech Ltd IPO
Nova AgriTech Limited was established in Hyderabad in May 2007 and produces ag-chem products to aid farmers to grow crops. Three primary areas are prioritized: crop protection, plant nutrition, and soil health. Technology is used in the manufacturing process to create nutrient-dense, ecologically friendly products. The company manufactures, distributes and markets a broad range of product categories, including (a) soil health products, (b) crop nutrition products, (c) biostimulants, (d) biopesticides, (e) integrated pest management (IPM) products, (f) new technologies and (g) crop protection products. The subsidiary Nova Agri Sciences Private Limited is currently responsible to produce crop protection products.
Nova Agritech Ltd IPO Financials
Particulars (in Cr) |
|
|
|
|
---|---|---|---|---|
Total Revenue Annual | 103 Cr | 211 Cr | 186 Cr | 161 Cr |
Operating Expenses Annual | 84 Cr | 172 Cr | 158 Cr | 143 Cr |
Operating Profit Annual | 19 Cr | 39 Cr | 28 Cr | 18 Cr |
Depreciation | 1 Cr | 2 Cr | 2 Cr | 2 Cr |
Interest Annual | 4 Cr | 9 Cr | 7 Cr | 2 Cr |
Tax Annual | 4 Cr | 8 Cr | 5 Cr | 2 Cr |
Net Profit Annual | 10 Cr | 20 Cr | 14 Cr | 6 Cr |
Total Share Holder Funds | 74 Cr | 64 Cr | 43 Cr | 29 Cr |
Fixed Asset Annual | 15 Cr | 16 Cr | 17 Cr | 16 Cr |
Total Non Current Asset | 22 Cr | 22 Cr | 23 Cr | 22 Cr |
Total Current Asset | 174 Cr | 158 Cr | 137 Cr | 126 Cr |
Book Value Per Share | ₹ 11 Cr | ₹ 10 Cr | ₹ 7 Cr | ₹ 5 Cr |
ROE | 15.0% | 38.3% | 37.7% | 24.1% |
ROCE | 12.9% | 27.3% | 23.9% | 19.9% |
Total Debt To Total Equity | 0.9 | 1.1 | 1.5 | 1.7 |
EBIDTA | 18.4% | 15.0% | 11.1% | |
Cash From Operating | 5 Cr | 5 Cr | 2 | 5 Cr |
Cash From Investing | 0 Cr | -2 Cr | -4 | -3 Cr |
Cash From Finance | -7 Cr | -2 Cr | 3 | -2 Cr |
Net Cash Flow | -2 Cr | 2 Cr | 1 | 0 Cr |
Promoter's Holding
Total Share Capital
-
Offered to Public
-
Promoter’s Holding(Pre-Issue)
84.27%
Promoter’s Holding(Post-Issue)
59.39%
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.
2. Established distribution network across various geographies through many dealers.
3. Strengthening farmer outreach through Nova Kisan Seva Kendra.
4. Technology driven product development and marketing.
Weaknesses
The following points should be kept in mind:
Nova Agritech, like any business, has its strengths and challenges. The business depends on its raw material sourcing heavily but unfortunately they do not have any sort of long term agreements with their suppliers, exposing them to risk in sourcing and availability of quality raw material. The business had a tough time managing its working capital requirements due to very high trade receivable days (203 days in FY23) which has led to an increase in short term borrowings and reduces cashflows. As a result trade receivables are also very high inflating current assets and creating a risk of any defaults. The nature of the business is such that it is dependent on climate conditions, any unfavorable or adverse climatic conditions would affect revenues. Since it is engaged in manufacturing crop protection products, the business is cyclical in nature.
The initial public offer (IPO) of Nova AgriTech Limited offers an early investment opportunity in Nova AgriTech Limited. A stock market investor can buy Nova AgriTech IPO shares by applying in IPO before Nova AgriTech Limited shares get listed at the stock exchanges. An investor could invest in Nova AgriTech IPO for short term listing gain or a long term.
The issue size of Nova Agritech Limited IPO 143.81cr
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