Nova Agritech IPO turns blockbuster, subscribed 109 times

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The initial public offering of Nova Agritech saw overwhelming response from all category investors with the issue being subscribed over 109 times, as non-institutions bid aggressively. The IPO, which came out with a price band of ₹39-41, received bids for 277.94 crore shares against 2.54 crore shares (net off anchor portion) on offer.

The NII category received bids 224 times, while the portion for retail investors was subscribed 77.10 times and that of qualified institutional buyers 79.31 times. The ₹143.81-crore IPO from the soil health management, crop nutrition and crop protection products company consisted of a fresh issue of ₹112 crore and an offer-for-sale (OFS) of up to 77,58,620 shares (worth ₹31.81 crore) by the selling shareholder, Nutalapati Venkatasubbarao.

On Friday, the company raised ₹43.14 crore from anchor investors as part of IPO fundraising exercise. Among them were Quantum-State Investment Fund, Neomile Growth Fund, AG Dynamic Funds limited and Saint Capital Fund.

Utility of funds

The company plans to use the net proceeds worth ₹14.20 crore for investment in its subsidiary Nova Agri Sciences to set up a new formulation plant, ₹10.49 crore for funding capital expenditure and towards expansion of its existing formulation plant.

The company will utilise ₹26.65 crore for funding the working capital requirements of Nova Agritech and ₹43.36 crore for investment in Nova Agri Sciences’ working capital requirements.