Unlisted shares of Nova Agritech Ltd continue to trade Rs 20 higher in the grey market, which is a 48.78 per cent listing gain from the public issue
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Nova Agritech IPO: The initial public offering (IPO) of agricultural inputs manufacturer Nova Agritech Ltd, which is going to be closed on Thursday, January 25, has received an overwhelming response from investors. Till 11:41 am on the first day of bidding, the Rs 143.81-crore received 50.35 times subscription, garnering bids for 1,23,63,60,850 shares as against 2,45,52,985 shares.
The retail category has been subscribed 51.75 times, while the non-institutional investor (NII) quota has been subscribed 112.54 times. The QIB category has received 1.27 times subscription.
The IPO was opened for public subscription on Tuesday, January 23. The offer raised a little over Rs 43 crore from anchor investors, days before its initial public offering (IPO). The company allocated 1.05 crore equity shares at Rs 41 apiece to anchor investors, according to a circular uploaded on BSE’s website.
Nova Agritech IPO GMP Today
According to market observers, unlisted shares of Nova Agritech Ltd continue to trade Rs 20 higher in the grey market as compared with its issue price. The Rs 20 grey market premium or GMP means the grey market is expecting a 48.78 per cent listing gain from the public issue. The GMP is based on market sentiments and keeps changing.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Nova Agritech IPO Details
The Rs 144-crore initial share-sale will open for public subscription on January 22 and conclude on January 24. The company has set a price band of Rs 39 to Rs 41 per share for the issue.
The IPO comprises fresh issue of equity shares worth up to Rs 112 crore and an offer-for-sale (OFS) component of 77.58 lakh equity shares by a shareholder Nutalapati Venkatasubbarao, who owns 11.9 per cent stake in the company.
Proceeds from the fresh issue worth Rs 14.20 crore will be utilised for investment in its subsidiary Nova Agri Sciences for setting up a new formulation plant, Rs 10.49 crore for funding capital expenditure by Nova Agritech and towards expansion of its existing formulation plant.
It will also use Rs 26.65 crore for funding of working capital requirements of Nova Agritech and Rs 43.36 crore for investment in Nova Agri Sciences for funding working capital requirements. Besides, a portion will be used for general corporate purposes.
At the upper-end of the price band, the maiden public issue is expected to mobilise Rs 143.81 crore. Incorporated in 2007, the firm manufactures, distributes and markets a wide range of product categories consisting of soil health management products, crop nutrition, bio stimulant, bio pesticide, integrated pest management (IPM) products and crop protection products.
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Keynote Financial Services Ltd and Bajaj Capital Ltd are the book running lead managers to the issue.
