Nova Agritech files Draft papers for IPO with SEBI
Telangana- grounded Agri– input manufacturer Nova Agritech has filed its draft red herring prospectus (DRHP) papers with capital requests controller SEBI to raise finances through an original public immolation (IPO). According to the draft papers, the issue with a face value of Rs 2 per equity share consists of a fresh issue of equity shares worth up to Rs 140 crore and an offer- for- trade (OFS) of over to 77,58,620 equity shares by Nutalapati Venkatasubbarao.
The company and the dealing shareholders, in discussion with the BRLMs, may consider a pre-IPO placement of equity shares of over to Rs 25crores. However, the issue size will be reduced consequently, if similar placement is completed. The Offer is being made through the book- structure process, wherein not further than 50% of the offer shall be available for allocation to good institutional buyers (QIBs), not lower than 15% of the offer shall be available for allocation to non-institutional investors, and not lower than 35% of the offer shall be available for allocation to retail individual investors.
Out of the proceeds from the fresh allocation, a quantum of Rs14.20 crore will be utilised for investment in its attachment, Nova Agri Sciences, for setting up a new expression factory, and Rs10.49 crore will be utilised for backing capital expenditure by the company, towards the expansion of its being expression factory. Rs26.69 crore will be allocated for capital conditions, and Rs56.74 crore will be used for investment in its attachment Nova Agri Sciences Pvt Ltd for working capital conditions and general commercial purposes. Nova Agritech’s profit from operations increased by 15.56% to Rs185.57 crore for the fiscal time 2021- 22 from Rs160.58 crore for the fiscal time 2020- 21, whereas profit after duty increased by117.30 to Rs13.69 crore for the fiscal time 2021- 22 from Rs6.30 crore for the fiscal time 2020- 21.
The shares of the company are proposed to be listed on NSE and BSE. Nova Agritech manufactures, distributes, and requests a wide range of product orders conforming of soil health operation products, crop nutrition products, bio stimulant products, biopesticide products, Integrated Pest Management (IPM) products, and crop protection products through an active network of over 6200 dealerships spread across 16 countries across the country. It has contracts in place to supply, request, and distribute with certain third parties in Bangladesh, Sri Lanka, and Vietnam and is presently awaiting the applicable blessing to open for business in these countries.
About Nova Agritech Limited
Nova Agritech Limited was incorporated as a private limited company under the provisions of the Companies Act, 1956 on May 9, 2007 at Hyderabad, Andhra Pradesh. Our business was started by our founders Sambasivarao Yeluri and Kalyana Chakravarthy with an objective to be a one-stop solution provider by offering ecologically sustainable and nutritionally balanced products to the farmers.
We are an Agri-input manufacturer offering soil health management, crop nutrition and crop protection products focused on tech-based farmer driven solution approach, wherein we mainly offer ecologically sustainable and nutritionally balanced products based on our R&D. We manufacture, distribute and market a wide range of product categories consisting of (a) soil health management products; (b) crop nutrition products; (c) bio stimulant products; (d) bio pesticide products (e) Integrated Pest Management (IPM) products; (f) new technologies; and (g) crop protection products. Currently, the crop protection products are manufactured by our subsidiary Nova Agri Sciences Private Limited.
We have received a total of 629 product registrations comprising of 7 registrations in the soil health management category, 168 registrations in the crop nutrition category, 4 registrations in bio pesticide category and 450 registrations in the crop protection category. All of the 450 registrations in the crop protection category are in the name of Nova Agri Sciences Private Limited. Further, we have applied for 53 registrations for new products across various categories in the name of Nova Agri Sciences Private Limited (NASPL) and 26 new registrations in the name of Nova Agritech Limited (NATL).
We have a total dealer network comprising of approximately 10,900 dealers out of which approximately 6200 dealers are active to whom we have distributed and sold our products during the current financial year. Our dealer network is currently spread across 16 states of India . We have also entered into marketing, distribution and supply agreements with certain third parties in Bangladesh, Sri Lanka and Vietnam and are currently awaiting the necessary permission to start business in these jurisdictions.
We intend to import and distribute Technicals, which will be a prominent factor in the growth of the agriculture sector in India in the near future. Considering the same NASPL has entered into Registration and Distribution Agreements for import and distribution of Technicals with a Taiwanese and a Chinese entity.