Nova Agritech IPO Company Profile:
Nova Agritech Limited is an Agri-input manufacturer offering soil health management, crop nutrition and crop protection products focused on tech-based farmer driven solution approach, wherein the company mainly offer ecologically sustainable and nutritionally balanced products based on its R&D. The company manufactures, distributes, and markets a wide range of product categories consisting of:
- Soil health management products;
- Crop nutrition products;
- Bio stimulant products;
- Bio pesticide products
- Integrated Pest Management (IPM) products;
- New technologies; and
- Crop protection products.
Currently, the crop protection products are manufactured by its subsidiary Nova Agri Sciences Private Limited.
Nova Agritech Limited has a total dealer network comprising of approximately 10,900 dealers out of which approximately 6200 dealers are active to whom the company has distributed and sold its products during the current financial year. The dealer network is currently spread across 16 states of India namely Andhra Pradesh, Telangana, Maharashtra, Karnataka, Madhya Pradesh, Rajasthan, Chhattisgarh, Tamil Nadu, Uttar Pradesh, Odisha, West Bengal, Bihar, Gujarat, Jharkhand, Uttarakhand, and Jammu & Kashmir and 02 in Nepal. The company has also entered marketing, distribution and supply agreements with certain third parties in Bangladesh, Sri Lanka and Vietnam and is currently awaiting the necessary permission to start business in these jurisdictions.
Nova Agritech Limited’s registered office and manufacturing facilities are situated at, Sy.No.251/A/1 Singannaguda Village, Mulugu Mandal, Siddipet District, Telangana over an area admeasuring 12.05 acres. Besides the manufacturing facilities, the total area includes warehousing facilities for storage of raw material and finished goods.
Nova Agritech IPO Details:
|IPO Open Date||Not Available|
|IPO Close Date||Not Available|
|Listing Date||Not Available|
|Face Value||₹2 per share|
|Lot Size||Not Available|
|Issue Size||Not Available|
|Fresh Issue||[●] shares
(Aggregating up to ₹140 Cr)
|Offer For Sale||77,58,620 shares
(Aggregating up to ₹ [●] Cr)
|Issue Type||Book Built Issue IPO|
|Listing At||BSE, NSE|
|QIB Shares Offered||Not more than 50% of the Offer|
|NII (HNI) Shares Offered||Not less than 15% of the Offer|
|Retail Shares Offered||Not less than 35% of the Offer|
|Promoters||Suraksha Agri Retails (India) Private Limited, Malathi S and Kiran Kumar Atukuri|
Nova Agritech IPO Financial Analysis:
|Particulars||6M of FY-23(in cr.)||FY-22(in cr.)||FY-21(in cr.)||FY-20(in cr.)||CAGR|
|Revenue from Operations||81.65||185.57||160.58||126.54||21.1%|
|Cost of Goods Sold||45.31||113.48||99.05||70.89||26.5%|
|Profit / (loss) before tax||8.77||18.44||8.67||4.86||94.8%|
|Profit / (loss) After tax||6.86||13.69||6.30||2.98||114.3%|
|Profit / (loss) After tax margin%||8.41%||7.38%||3.92%||2.35%|
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Check Nova Agritech IPO Allotment Status
Go Nova Agritech IPO allotment status would be available soon after the IPO closure date. Usually the allotment comes within a week from the closing date which in this IPO yet to be announced.
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Nova Agritech IPO Major Shareholders:
|S.NO.||Name of the Shareholder||No. of Shares||% of pre-Offer shareholding|
|1||Suraksha Agri Retails (India) Private Limited||1,53,88,040||23.60%|
|4||Yeluri Family Trust||3,11,34,360||47.75%|
|5||Nova Agritech Employees Welfare Trust||25,00,000||3.83%|
Nova Agritech IPO Offer for Sale Details:
|S. No.||Name of the Selling Shareholder||Number of Equity Shares
being offered in the Offer for Sale (Up to)
|1.||Nutalapati Venkatasubbarao||77,58,620 Equity Shares|
Nova Agritech IPO Strengths:
As on January 31, 2023, Nova Agritech Limited has 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, the company has 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).
Nova Agritech Limited has a diversified branded product portfolio and offer varied range of products as a complete solution for agricultural requirements such as comprehensive range of soil health management, crop nutrition and crop protection. The company manufactures a wide range of product categories consisting of soil health management products such as organic fertilizers, bio fertilizers and soil conditioners; crop nutrition products such as micronutrient fertilizers, beneficial element fertilizers, straight nitrogen fertilizers, straight potash fertilizers and 100% water soluble NPK fertilizer; and crop protection products such as insecticides, fungicides, herbicides and plant growth regulators.
Due to Nova Agritech Limited’s widespread dealer network, the company is able to supply soil health management, crop nutrition and crop protection products to farmers, within the required time, which is critical considering the seasonal nature of the agricultural business. The company follows a defined process of identifying a dealer, based on certain assessment system that it follows, to ensure that the company reachs out to as much of the geographical limits of the country as possible.
Nova Agritech Limited’s relationship with the dealers and availability of its own sales force, enables it to introduce new products in a timely manner and also allows it to make it accessible to as many farmers as possible. The company also benefits from their feedback, which enables it to gauge the demand for its existing formulations and generic active ingredients. The company has entered into agreement with some of the parties on C&F agent basis for distributing its products to dealers.
Across the value chain of Nova Agritech Limited’s business, the company uses technology to understand the evolving dynamics of the market, assess farmer needs to enhance its product portfolio, provide solution and cater to the changing demand and requirement of the market. The agricultural landscape is constantly evolving and it is important that the company’s business approach is aligned to such changes. The use of technology helps it to adapt to such changes in a timely manner.
Nova Agritech Limited has a dedicated in-house R&D facility and a Quality Control / Quality Assurance (QC/QA) facility at the manufacturing facilities to support technology transfer for new products and on-site process improvement incubation centre. The company also have tie-ups with various universities to get access of process know-how, innovation, R&D, knowledge transfer, technology transfer, product transfer, credit support, man power, development, etc.
Nova Agritech IPO Risk Factors:
If Nova Agritech Limited is unable to effectively manage or expand its dealer network and operations or pursue its growth strategy and maintain healthy relations with existing dealers, its sales may be affected and the company may not achieve its expected levels of profitability which may adversely affect the business prospects, financial condition and results of operations.
Nova Agritech Limited has significant working capital requirements and may require additional capital and financing in the future. The company’s ability to access capital at attractive costs also depends on its credit ratings. The company’s operations could be curtailed if it is unable to obtain required additional capital and financing when needed.
Nova Agritech Limited’s business is sensitive to weather conditions such as rains, drought, floods, cyclones and natural disasters, as well as events such as pest and disease infestations. There is growing concern that carbon dioxide and other greenhouse gases in the atmosphere may have an adverse impact on global temperatures, weather patterns and the frequency and severity of extreme weather and natural disasters. Seasonal variations and unfavourable weather patterns may have an adverse effect on the business, results of operations and financial condition of the company.
Nova Agritech Limited’s operations are subject to environmental and workers’ health and safety laws and regulations. The company may have to incur material costs to comply with these regulations or suffer material liabilities or damages in the event of an incidence or non-compliance of environment and other similar laws and regulations which may have a material adverse effect on the company’s reputation, business, financial condition and results of operations.
Nova Agritech Limited may be subject to significant risks and hazards when operating and maintaining its manufacturing facility, including the manufacture, usage and storage of various flammable, or hazardous substances, for which the insurance coverage might not be adequate.
Nova Agritech IPO Objects of the Offer:
The net proceeds of the Fresh Offer, i.e. gross proceeds of the Fresh Offer less the offer expenses apportioned to Nova Agritech Limited (“Net Proceeds”) are proposed to be utilised in the following manner:
- Investment in its subsidiary, Nova Agri Sciences Private Limited for setting-up a new formulation plant.
- Funding Capital Expenditure in the Company, towards expansion of our existing formulation plant
- Funding of working capital requirements of the Company.
- Investment in the company’s subsidiary, Nova Agri Sciences Private Limited, for funding working capital requirements.
- General corporate purposes.
Nova Agritech IPO Prospectus:
- Nova Agritech Limited IPO DRHP- https://www.sebi.gov.in/filings/public-issues/mar-2023/nova-agritech-limited-drhp_68706.html
- Nova Agritech Limited IPO RHP-
Registrar to the offer:
Bigshare Services Pvt. Ltd.