Nova Agritech Limited, a manufacturer of agricultural inputs for soil health management and crop protection, has filed its draft red herring prospectus (DRHP) to raise ₹140 crore funds through an Initial Public Offering (IPO). 

There’s an offer-for-sale (OFS) of up to 77.58 lakh shares by the company’s promoter Nutalapati Venkatasubbarao. The company, however, has not disclosed at what price the OFS component is being offered.

The shares of the company will be listed on NSE and BSE.

“The issue with a face value of ₹2 per equity share consists of a fresh issue of equity shares worth up to ₹140 crore,” the company said on Monday.

The company may consider raising ₹25 crore through a pre-IPO placement. “If such placement is completed, the issue size will be reduced accordingly,” it said.

“Not less than 35 per cent of the offer would be available for allocation to retail individual investors,” it said.

Investment plans

The company said about ₹14 crore from the proceeds would be invested in its subsidiary Nova Agri Sciences Private Limited for setting up a new formulation plant. Another ₹56.74 crore would be invested in the subsidiary for working capital requirements.

Nova Agritech has 629 product registrations, comprising seven in the soil health management category and 168 in the crop nutrition.

The company registered a revenue of ₹185.57 crore in 2021-22, showing a growth of 15.56 per cent. over its revenue of ₹160.58 crore in the previous year.

Its net profit more than double to ₹13.69 crore from ₹6.30 crore during the period.

Related Topics
comment COMMENT NOW