Nova Agritech IPO sees strong demand, subscribed over 5x on Day 1; GMP at 70%
Nova Agritech IPO was fully subscribed on first day of the bidding process on Tueday. The overall subscription stood at 5.4 times so far on the first day with retail category subscription at 8.1 times. NII portion also saw strong response as it attracted 6.1 times bids.
Want to take exposure to a sector which grows much faster than GDP
The IPO, which closes on January 25, includes a fresh equity issue of Rs 112 crore and an offer-for-sale (OFS) of 77.58 lakh shares.
Nova Agritech IPO GMP
In line with the strong subscription status, Nova Agritech GMP is quoting Rs 20 in the unlisted market. Compared with the upper price band, investors are willing to pay a premium of nearly 70%.
Nova Agritech IPO price band
The company has fixed a price band of Rs 39-41 for the IPO and investors can bid for 365 shares in one lot.
About 50% of the will be available for allocation to qualified institutional buyers (QIBs), 15% to non-institutional investors (NIIs), and 35% to retail investors.
Also Read: Nova Agritech IPO: Should you subscribe to this Rs 144-crore issue?
Nova Agritech IPO review
Most analysts gave a subscribe recommendation to the IPO over the company's solid financial track record in a highly-competitive sector. The company has delivered an impressive return on equity (ROE) of 32.1% and boasts of robust PAT margins at 9.7% in FY23.
Other details
Nova AgriTech is an agri-input manufacturer offering soil health management, crop nutrition and crop protection products focused on tech-based farmer driven solution approach, wherein it mainly offers ecologically sustainable and nutritionally balanced products based on R&D.
As of November 2023, it has received a total of 720 product registrations comprising 7 registrations
