Nova Agritech files its IPO papers with SEBI. All you need to know about the IPO and the company.

Nutalapati Venkatasubbarao wants to sell the entire shareholding in the company through the offer for sale (OFS).

Nova Agritech files its IPO papers with SEBI

Nova Agritech has filed its prelim papers with SEBI for its IPO. The company is based in Telangana are is a manufacturer of agri-inputs. The initial public offering (IPO) consists of fresh shares worth Rs. 140 crores and an OFS of 77.58 lac equity shares by Nutalapati Venkatasubbarao, a non-promoter. 

Nutalapati Venkatasubbarao wants to sell the entire shareholding in the company through the offer for sale (OFS). Nutalapati Venkatasubbarao currently has 77.58 lac shares or 11.9% stake in the company, and the promoters hold the rest. The company might consider an Rs. 25 crores pre-IPO placement before it files the RHP. 

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About Nova Agritech

The fresh issue size might reduce if the company undertakes the pre-IPO placement. The company offers farmer-driven, tech-based crop protection, crop nutrition, and soil health management products. Nova Agri Sciences, a company subsidiary, manufactures crop protection products. 

The company received 629 registrations for its products, including seven soil health management category registrations. It got 450 in crop protection and 4 in the biopesticide category. These stats are until January 2023. The company will utilize the proceeds from net fresh issue to set up a new plant for formulation for its subsidiary (Nova Agri Sciences). It will also use the funds to expand the existing plant. The company also plans to use the funds for working capital and general corporate purposes. 

Nova has a large dealer network of around 10,900 dealers and has a presence in over 16 states across India. It also has supply, distribution, and marketing agreements with third parties in Vietnam, Sri Lanka, and Bangladesh. The company is awaiting the necessary allowance to commence its business internationally. 

Also ReadDifference between confidential and traditional IPO filing. 

Nova has an Rs. 13.7 crore profit in 2021-2022, an increase of 117.3% from the previous year. It comes due to strong operating performance. The revenue increased by 15.5% to Rs. 185.6 crores in the same period. The company reported a Rs. 6.86 crores profit in FY23's first half.


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