In the grey market, unlisted shares of Nova Agritech Ltd. are still trading at a premium of Rs. 20, representing a 48.78% listing gain from the public offering.
gmp ipo of Nova Agritech Ltd.: Investors have responded overwhelmingly to the agricultural inputs manufacturer’s initial public offering gmp ipo, which is scheduled to conclude on Thursday, January 25. On the first day of bidding, which ended at 5:35 pm, the Rs 143.81-crore received 113.20 times the subscription, resulting in bids for 2,77,94,76,095 shares as opposed to 2,45,52,985 shares.
Only 80.18 subscriptions have been made in the retail category, compared to 233.01 subscriptions in the non-institutional investor (NII) quota. Subscribers have viewed the QIB category 81.13 times.
On January 23, a Tuesday, the gmp ipo went live for public subscription. Days before it made its initial public offering gmp ipo, the offer raised slightly more than Rs 43 crore from anchor investors. An announcement posted on the BSE website states that the company issued 1.05 crore equity shares to anchor investors at a price of Rs 41 each.Nova Agritech’s gmp ipo Today
The unlisted shares of Nova Agritech Ltd. are still trading on the grey market for Rs. 20 more than the issue price, according to market watchers. With a Rs 20 grey market premium, or gmp ipo, the grey market anticipates a 48.78% listing gain from the public offering. The GMP is constantly fluctuating and is dependent on market sentiment.
An indication of investors’ willingness to pay over the issue price is the “grey market premium.
gmp ipo Specifics for Nova Agritech
The public can subscribe for the Rs 144-crore initial share sale starting on January 22 and it will end on January 24. The price range that the company has set for the issue is Rs 39 to Rs 41 per share.
A shareholder who holds an 11.9 percent stake in the company, Nutalapati Venkatasubbarao, is offering 77.58 lakh equity shares as part of an offer-for-sale (OFS) component of the gmp ipo, along with new equity shares worth up to Rs 112 crore.
The proceeds of the new offering, which total Rs 14.20 crore, will be used to invest in its subsidiary Nova Agri Sciences in order to establish a new formulation plant. Furthermore, Nova Agritech intends to utilize Rs 10.49 crore to fund capital expenditures related to the expansion of its current formulation plant.
Additionally, it will use Rs. 26.65 crore to finance Nova Agritech’s working capital needs and 43.36 crore rupees will be used to fund a Nova Agri Sciences investment. A portion will also be used for routine business requirements.
The first public offering is expected to raise, at the upper end of the price range, Rs 143.81 crore. The company was founded in 2007 and produces, sells, and uses a broad variety of products, including integrated pest management (IPM), crop nutrition, biostimulant, biopesticide, and products for soil health management.
Widespread dealer network: With the assistance of its network of dealers located in several states, the company markets, sells, and distributes its extensive line of products to farmers throughout India. Its entire dealer network consists of roughly 11,722 dealers, of which about 6,769 are actively trading. There are currently 16 states in its dealer network.
Additionally, the company has agreements in place for marketing, distribution, and supply with a number of third parties in Bangladesh, Sri Lanka, and Vietnam. These parties are currently awaiting the required authorizations to begin conducting business in these regions.
Nova Kisan Seva Kendra: The company educates farmers on different crop management techniques through its farmer outreach program, Nova Kisan Seva Kendra (NKSK). As of November 30, 2023, there are 24 NKSK Coordinators on the team.
In addition to the NKSK Coordinators, the organization has agreements with people in different states who serve as Kisan Mitras and Kisan Sevaks, meeting the needs of the farmers. As of November 30, 2023, the Company has grassroots ties to 142 Kisan Sevaks and 96 Kisan Mitras. Offering farmers need-based products, technologies, know-how, and usage skills will help them increase farm yield. This is NKSK’s main goal.
Check the details of the price band announced by Gabriel Pet Straps gmp ipo, which is ₹101 per piece.
Facilities for research and development: As disclosed by the RHP, Nova maintains an on-site process improvement incubation center in addition to a specialized internal R&D and QC/QA facility at its manufacturing facilities to facilitate technology transfer for new products. Additionally, it has partnerships with multiple universities to gain access to manpower, development, credit support, innovation, R&D, knowledge transfer, technology transfer, and product transfer, among other things.
As part of its research and development, it has leased 67.13 acres of land in Valaparla Village, Andhra Pradesh, where it will test the effectiveness of its products on a range of crops.
Financials: From ₹13.69 crore in FY22 to ₹20.49 crore in FY23, the company’s profit climbed by 49.69 percent. In the meantime, its operating revenue increased 13.47 percent from ₹185.56 crore in FY22 to ₹210.55 crore in FY23. The rise in business volumes as a result of technical import was the cause of the revenue increase.
registrations, expanding into recently formed states like Tamil Nadu, and consolidating operations in Telangana, Andhra Pradesh, and Karnataka TAC Security, backed by Vijay Kedia, files documents with SEBI and plans to list on NSE Emerge
Seasonality of business: Compared to other periods, the company’s revenues are comparatively higher in the months of September through February, indicating seasonality in the business. In order to ensure that business runs continuously throughout the year, the RHP stated that the seasonality in business is mitigated by targeting various crops such as paddy, cotton, chillies, and horticultural crops, as well as by planning sales on kharif, rabi, and summer crops.
A summary of the industry For roughly 58% of Indians, agriculture is their main source of income. Because of this, the contribution of agriculture and related industries to the Gross Value Added (GVA) of the entire economy has been substantial and has grown over time. The GVA for agriculture climbed at a CAGR of 4.3 percent from ₹18.87 lakh crore in 2018–19 to ₹22.34 lakh crore in 2022–23 over the course of the five-year period between 2018–19 and 2022–23.