Nova Agritech Ltd, a Telangana-based manufacturer of agricultural inputs, has filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an Initial Public Offering (IPO).
The issue with a face value of ₹2 per equity share consists of a fresh issue of equity shares worth up to ₹140 crore and an offer-for-sale (OFS) of up to 77,58,620 equity shares by promoter selling shareholder, Nutalapati Venkatasubbarao.
In consultation with the book running lead managers (BRLMs), the company and the selling shareholders may consider a pre-ipo placement of equity shares worth up to ₹25 crore. Once such a placement is finished, the issue size will be adjusted. Bajaj Capital Limited and Keynote Financial Services Limited are the issue's book-running lead managers.
Out of the proceeds, a total of Rs. 14.20 crore will be invested in the company's subsidiary Nova Agri Sciences Private Ltd to set up a new formulation plant, Rs. 10.49 crore will be used to fund capital expenditures by the company to expand its current formulation plant, Rs. 26.69 crore will be used to fund working capital requirements, and Rs. 56.74 will be invested in the company's subsidiary Nova Agri Sciences Private Ltd to fund working capital requirements.
The offer is being made through the book-building process, in which not less than 15% of the offer must be made available to non-institutional investors and not less than 35% of the offer must be made available to retail individual investors. Not more than 50% of the offer may be allocated to qualified institutional buyers.
As per the DRHP, the company was founded in 2007 by Sambasivarao Yeluri and Kalyana Chakravarthy with an objective to become a one-stop solution provider for the farming community. It's currently being led and promoted by technocrat Kiran Kumar Atukuri who has over 2 decades of experience with agri chemical, seed and fertilizer companies.
As of January 31, 2023, Nova Agritech had registered a total of 629 products; its subsidiary had registered 7 in the category of soil health management, 168 in the category of crop nutrition, 4 in the category of biopesticides, and 450 in the category of crop protection. Additionally, Nova Agritech and its group companies had applied for 79 additional registrations.
For the six months ending September 30, 2022, revenue from operations stood at ₹81.65 crore and profit after tax stood at ₹6.86 crore.
The shares of the company are proposed to be listed on NSE and BSE.
