The shares of Nova Agritech listed on the exchanges on Wednesday with a premium of 36.6%. The stock debuted at Rs 56 on BSE as against an issue price of Rs 41. Meanwhile, the stock opened at Rs 55, up 34% on NSE.

Ahead of the debut, the company’s shares fetched a premium of Rs 23 in the unlisted market.

Nova Agritech IPO, which included a fresh equity issue worth Rs 112 crore and an offer for sale (OFS) of 77.5 lakh shares, received massive subscription of over 100 times, driven by heavy bidding from non-institutional and institutional investors.

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.

Ahead of the IPO opening, the company has raised Rs 43 from anchor investors including Quantum- State Investment Fund, Neomile Growth Fund among others.

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.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 in the soil health management category, 176 in the crop nutrition category, 4 in bio pesticide category, 7 in technical indigenous manufacturing and 526 in the crop protection category.

The subsidiary, Nova Agri Sciences (NASPL), handles the manufacturing of crop protection products, contributing significantly to the company’s revenue.

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

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