Nova Agritech IPO closes today: Check subscription status, GMP today

Nova Agritech IPO: The initial public offering (IPO) of agricultural input maker Nova Agritech Ltd, which is set to close on Thursday, January 25, has received an overwhelming response from investors. As of 11:41 am on the first day of bidding, the shares worth Rs 143.81 crore were subscribed 50.35 times, resulting in bids for 1,23,63,60,850 shares against 2,45,52,985 shares.

The retail category has been subscribed 51.75 times, while the non-institutional investor (NII) quota has been subscribed 112.54 times. QIB category has received 1.27 times subscription.

The IPO was opened for public subscription on Tuesday, January 23. A few days before the initial public offering (IPO), the offer had raised a little over Rs 43 crore from anchor investors. According to a circular uploaded on the BSE website, the company allotted 1.05 crore equity shares at Rs 41 per share to anchor investors.

nova agritech ipo gmp today

According to market observers, unlisted shares of Nova Agritech Ltd are trading Rs 20 higher than their issue price in the gray market. The gray market premium or GMP of Rs 20 means the gray market is expecting 48.78 per cent listing profit from the public issue. GMP is based on market sentiments and keeps changing.

The ‘grey market premium’ refers to the willingness of investors to pay more than the issue price.

Nova Agritech IPO Details

The initial share-sale of Rs 144 crore will open for public subscription on January 22 and will end on January 24. The company has set a price band of Rs 39 to Rs 41 per share for the issue.

The IPO comprises a fresh issue of equity shares worth up to Rs 112 crore and an offer-for-sale (OFS) component of 77.58 lakh equity shares by a shareholder Nutalapati Venkatasubbarao, who holds 11.9 per cent stake in the company.

The proceeds from the fresh issue of Rs 14.20 crore will be used for investment in its subsidiary Nova Agri Sciences for setting up a new formulation plant, Rs 10.49 crore for financing capital expenditure by Nova Agritech and for the development of its existing formulation plant. Will be used for expansion.

It will use Rs 26.65 crore to finance the working capital requirements of Nova Agritech and Rs 43.36 crore to invest in Nova Agri Sciences to finance the working capital requirements. In addition, a portion will be used for general corporate purposes.

At the upper end of the price band, the first public offering is expected to raise Rs 143.81 crore. Established in 2007, the company manufactures, distributes and markets a wide range of product categories including soil health management products, crop nutrition, bio-stimulants, bio-pesticides, Integrated Pest Management (IPM) products and crop protection products.

Keynote Financial Services Limited and Bajaj Capital Limited are the book running lead managers to the issue.