Nova Agritech IPO Subscribed 109.37 Times On Final Day

Nova Agritech Ltd.'s initial public offering was subscribed 109.37 times on the third day.

The offering—comprising a fresh issue and offer for sale—was looking to raise Rs 143.8 crore through the issue. The IPO has a price band of Rs 39-41 per share.

It was subscribed 9.75 times on its opening day, and was fully subscribed within the first few hours.

The company will create a fresh issue of shares worth Rs 112 crore. The offer-for-sale portion has Nutalapati Venkatasubbarao as the sole selling shareholder, who was looking to offload 77.6 lakh shares. At the upper end of the price band, this portion can raise Rs 31.8 crore, which will not be part of the net proceeds.

Of the net proceeds from the offer, Rs 14.2 crore will be given to subsidiary Nova Agri Sciences Pvt., for setting-up a new formulation plant. Another Rs 10.5 crore will be used to finance capital expenditure for the expansion of an existing formulation plant. The company will allocate Rs 26.7 crore and Rs 43.4 crore, respectively, to fund working capital requirements of its own and that of its subsidiary Nova Agri Sciences.

• Issue opens: Jan. 23.

• Issue closes: Jan. 25.

• Total issue size: Rs 143.8 crore

• Face value: Rs 2 apiece.

• Fixed price band: Rs 39-41 per share.

• Minimum lot size: 365 shares.

• Listing: NSE and BSE.

The IPO was subscribed 109.37 times as of 7 p.m. on Thursday.

• Institutional investors: 79.31 times.

• Non-institutional investors: 224.08 times.

• Retail investors: 77.12 times.

Incorporated in May 2007, Nova Agritech is an agri-input manufacturer offering soil health management, crop nutrition and crop protection products. Its subsidiary, Nova Agri Sciences, manufactures the crop protection products for the company.

The company has 11,722 dealers affiliated with it, of which 6,769 dealers are active. Its dealer network is present in 16 states, with significant amounts of revenue coming from Andhra Pradesh, Karnataka and Telangana.

The company has entered into marketing, distribution and supply agreements with certain third parties in Bangladesh, Sri Lanka and Vietnam, and it's planning to start operations there.