Nova Agritech IPO: Company Raises Rs 43 Crore from Anchor Investors | View the most important details here
Keynote Financial Services Ltd and Bajaj Capital Ltd are the lead managers on this issue.
Agricultural inputs manufacturer Nova Agritech Ltd raised a little over Rs 43 crore from major investors on Friday, days ahead of its initial public offering (IPO). The company has allotted shares of 1.05 crore at Rs 41 each to investors, according to a circular uploaded on BSE's website. At this price, the total transaction size has been pegged at Rs 43.14 crore, it showed.
Foreign investors and domestic institutional investors to whom shares have been allocated are: Quantum-State Investment Fund, Neomile Growth Fund, AG Dynamic Funds limited and Saint Capital Fund. The initial share sale worth Rs 144 crore will open for public subscription on January 22 and close on January 24. The company has fixed a price band of Rs 39 to Rs 41 per share for the issue.
The IPO includes a fresh issue of shares worth up to Rs 112 crore and an offer-for-sale (OFS) component of 77.58 lakh shares by shareholder Nutalapati Venkatasubbarao, who owns 11.9 per cent stake in the company.
The proceeds of the fresh issue worth Rs 14.20 crore will be used for investment in its subsidiary Nova Agri Sciences for setting up a new formulation plant, Rs 10.49 crore for financing capital expenditure by Nova Agritech and for expansion of its existing formulation plant.
It will also use Rs 26.65 crore to fund Nova Agritech's working capital needs and Rs 43.36 crore for investments in
Nova Agri Sciences to finance working capital needs. In addition, part will be used for general corporate purposes. At the higher end of the price range, the initial public issue is expected to mobilize Rs 143.81 crore.
Founded in 2007, the company manufactures, distributes and sells a wide range of product categories consisting of soil health management products, crop nutrition, biostimulants, biopesticides, integrated pest management (IPM) products and crop protection products.
Keynote Financial Services Ltd and Bajaj Capital Ltd are the lead managers on this issue.