Shares of Nova Agritech made a healthy debut on the exchanges with a premium of 34% over the issue price. The IPO received a significant oversubscription of 109 times, hinting at robust investor confidence in the company’s prospects.

The solid listing was fueled by multiple factors, including the company’s strong market position as a one-stop solution provider for crop and soil health through its diverse branded product portfolio.

Analysts said its well-established geographical presence and effective marketing strategy further enhance its growth potential.

“Nova Agritech’s consistent financial performance, impressive growth over the past three years, and ambitious expansion plans further bolstered investor sentiment. For existing investors, holding their shares and closely monitoring the company’s performance and market conditions remains the recommended approach,” said Shivani Nyati, Head of Wealth at Swastika Investmart.

The company delivered an impressive return on equity (ROE) of 32.1% and boasts robust PAT margins at 9.7% in FY23.

Proceeds from the fresh issuance will be utilized for investment in its subsidiary, funding capex, working capital requirements, and the rest for investment in the subsidiary Nova Agri Sciences.Also Read: Policybazaar shares cross IPO price after 2 years, jump 14% on first-ever profitNova AgriTech is an agri-input manufacturer offering soil health management, crop nutrition, and crop protection products focused on a 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 in the soil health management category, 176 in the crop nutrition category, 4 in biopesticide category, 7 in technical indigenous manufacturing, and 526 in the crop protection category.

In FY23, the company’s revenue from operations jumped 13% year-on-year (YoY) to Rs 210 crore, while profit after tax (PAT) surged 50% to Rs 20.48 crore. In the six months ended September 2023, revenue stood at Rs 103 crore and profit was at Rs 10.3 crore.

Keynote Financial Services and Bajaj Capital acted as the book-running lead managers and Bigshare Services was the registrar to the offer.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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