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Shares of Nova Agritech made a stellar debut at the bourses on Wednesday by gaining over 43 per cent. The stock opened at ₹56 on the BSE against the IPO price of ₹41, slipped to a low of ₹55 before closing at day’s high of ₹58.79, a gain of 43.39 per cent over the IPO price. On the NSE, shares were listed at ₹55 and closed at ₹57.75.
The IPO saw an overwhelming response from all category investors with the issue being subscribed over 109 times.
While the portion reserved for high net worth individuals was subscribed 224 times, quota for retail investors received bids for 77.10 times and that of qualified institutional buyers 79.31 times.
The IPO size was ₹143.81 crore from the soil-health-management, crop-nutrition and crop-protection products company that consisted of a fresh issue of ₹112 crore and an offer-for-sale (OFS) of ₹31.81 crore.
The company had raised ₹43.14 crore from anchor investors as part of the IPO fundraising exercise.
The company plans to use 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. Besides, it will utilise ₹26.65 crore for funding the working capital requirements of the company and ₹43.36 crore for investment in Nova Agri Sciences’ working capital requirements.
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