Nova Agritech shares made a significant entry on the bourses today, listing on BSE at ₹55, i.e. a premium of over 34% over the issue price of ₹41. Also, Nova Agritech’s share price on NSE was at ₹56 per share, which was 36.6% higher than the issue price.
Nova Agritech share price today hit its intra-day high of ₹58.79, up 43.4% over the IPO price on BSE. Shivani Nyati, Wealth Head, Swastika Investmart, said Nova Agritech’s IPO debut was ahead of expectations, listing at ₹55, 34.15% higher than the issue price of ₹41.
“Nova Agritech had witnessed a surplus of 109.37 times during the offer period, reiterating the unflinching investor confidence in the company’s prospects. The strong listing was attributed to the company’s strong market position as a one-stop solution provider to farmers. and soil health through its diverse branded product portfolio, was stimulated by several positive factors. Its strong local presence and effective marketing strategy have further enhanced its growth potential. According to experts, Nova Agritech’s regular The financial performance, promising growth shown over the last three years, and significant expansion plans are further boosting investor confidence,” Nyathi suggested.
He added that for existing investors, the recommended approach is to keep their shares in liquid form and closely monitor the company’s performance and market conditions.
Experts had predicted a strong listing for the IPO.
“At valuation, the PE ratio stands at 12.3x based on annualized diluted H1FY24 EPS which seems relatively low compared to industry peers,” BP Equities said while giving a subscribe tag to the book build issue. The value outlook is dependent on its ability to sustain, preserve net margins and gradually improve them. Based on the positives, we give it a “Subscribe” rating.”
Dhruv Mudardi, Research Analyst, Stocksbox, also said that Nova Agritech is poised to have huge growth potential in the Indian agriculture sector, which is projected to have a compound annual growth rate of 5.1 percent over the coming five years. The company’s expansion plans, determined by the allocated amount of the IPO, coincide with the industry’s heyday, highlighting the potential for future success.
Nova Agritech IPO Details –
The first public offering (IPO) of Nova Agritech was open for subscription between January 23 and January 25 in the price range of ₹39 to ₹41.
The IPO saw strong subscription in 3 days of bidding. By Day 3 it was subscribed 109.37 times. The retail investor portion of the Nova IPO was subscribed 77.12 times, the non-institutional investor (NII) portion was subscribed 224.08 times, and the qualified institutional buyers (QIB) portion was subscribed 79.31 times.
The ₹143.81 crore Nova IPO was part of fresh infusion of ₹112 crore and sale (OFS) of 77.58 lakh equity shares of ₹2 each, taking the total to ₹31.81 crore raised by the selling shareholder, Nutalapati Venkatasubbarao.
The net proceeds of this issue will be for funding the Company’s subsidiary Nova Agri Sciences Pvt. Ltd., for setting up new formulas, for expansion of the Company’s existing base plant, for expansion of the Company’s former parent plant, for financing the ongoing fulfillment needs of the Company and for general purpose. For business purposes.
As a manufacturer of agricultural products, Nova Agritech specializes in agricultural protection, agricultural nutrition, and soil health management. Our tech-driven farmer-facing solutions approach enables us to provide nutritious schemes and environmentally balanced products, with a strong focus on research and development.
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