Nova AgriTech Limited

About Nova AgriTech Limited  Incorporated in 2007, Nova Agritech Limited is an agri-input manufacturer of soil health management, crop nutrition and crop protection products based on its research and development (R&D). Apart from these, its product categories include biostimulants, biopesticides, Integrated Pest Management (IPM) products and new technologies.As of 30 November 2023, it has received 720 product registrations across these categories. Meanwhile, the company has a network of 6,769 active dealers who distribute and sell the company’s products. This dealer network is spread across 16 states in India. Also, the company has entered into marketing, distribution and supply agreements with third parties in Bangladesh, Sri Lanka and Vietnam. Its manufacturing facilities are located in the Siddipet District of Telangana. It has leased 67.13 acres of land at Valaparla Village, Andhra Pradesh as a part of R&D, to test the efficacy of its products on various crops.  The company also runs a farmer outreach program, the Nova Kisan Seva Kendra (NKSK), to educate farmers on various crop management practices. As of 30 November 2023, its NKSK team comprised 24 NKSK coordinators and was associated with 96 kisan mitras and 142 kisan sevaks at a grassroot level.Between FY21 and FY23, it has seen a CAGR rise of over 9% in its revenue from operations and 48% in its net profit. Moreover, the overall Indian pesticides and other agrochemicals industry is estimated to increase at a CAGR of around 6% by 2026 - 2027, which could benefit the company.  And now, Nova Agritech Limited is coming out with its initial public offer (IPO). The IPO will be an offer for sale as well as a fresh issue. The money raised through the fresh issue will be utilised to fund capital expenditure and working capital requirements and invest in its subsidiary to set up new formulation plant and for general corporate purposes. Its shares will be listed on the NSE and the BSE.  Here are key details about the Nova AgriTech Limited IPO:     Company Name  Nova AgriTech Limited   Company Type  Private    Company Established On  2007   Nova AgriTech Limited IPO Opening Date  January 23, 2024    Nova AgriTech Limited IPO Closing Date  25th January 2024   Nova AgriTech Limited IPO Allotment Status  29th January 2024    Credit of Shares to the Demat Account  January 30, 2024   Nova AgriTech Limited IPO Listing Date  January 31, 2024    Nova AgriTech Limited IPO Face Value  ₹2 per share   Nova AgriTech Limited IPO Lot Size  365 shares    Nova AgriTech Limited IPO Issue Size  approx. ₹143 crore   Nova AgriTech Limited IPO to be Listed on  BSE, NSE    Nova AgriTech Limited IPO Price band  ₹39 to ₹41 per share        Financial snapshot     Particulars  FY20  FY21  FY22  QFY24    Revenue  ₹ 160 crore  ₹ 185 crore  ₹ 210 crore  ₹103 crore    Net Profit  ₹ 6.30 crore  ₹ 13.6 crore  ₹ 20.4 crore  ₹ 10.3 crore              Here’s a quick look at Nova AgriTech Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Diversified product portfolio and one stop solution as it has received a total of 720 product registrations as of 30 November 2023 across different product categories.  Established distribution network across various geographies such as 16 Indian states and Nepal and holds agreements in Bangladesh, Sri Lanka and Vietnam as of 31 January 2023.  Farmer outreach program helps strengthen the brand value and recall of its existing products in existing and new markets.  Technology-driven product development includes Bhuparikshak, a device capable of detecting soil health in 90 seconds and Nova Agribot, a DGCA-approved drone for the purpose of the agri sector.  Focus on ecologically sustainable and nutritionally balanced products.  Well-equipped R&D facility with 27 employees, 67.13 acres of land at Valaparla Village, Andhra Pradesh and tie-ups with various universities to access process know-how, innovation, R&D, knowledge transfer, technology transfer and more.   Risks and threats   It is required to obtain and maintain various licences and permits to operate its business in different states.  Has a total outstanding debt of ₹44 crore as of 30 November 2023.  Experienced negative cash flow from investing and financing activities in FY21, FY22 and FY23.  Subject to strict technical specifications, quality requirements, regular inspections and audits by various authorities.  Business is subject to climatic conditions. Any seasonal variations and unfavourable weather patterns may impact demand for the company’s products.  Operates in a competitive market and faces competition from other agri-input companies.  Subject to drone regulations as it supplies agribot drones to farmers for better harvesting.            Nova AgriTech Limited IPO details  |Nova AgriTech Limited IPO date  According to the offer document filed by the company with the SEBI, the Nova Agritech Ltd IPO’s opening date – in other words, the Nova Agritech Ltd IPO launch date – is 22 January 2024. The Nova Agritech Ltd IPO closing date is 24 January 2024. The allotment status date is 25 January 2024.  Investors, who have been allotted shares, can expect them to be credited to their demat account on 29 January 2024. The Nova Agritech Ltd IPO listing date is 30 January 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.  |Nova AgriTech Limited IPO Price Band  The IPO is an offer for sale as well as a fresh issue. The Nova Agritech Ltd IPO price band is ₹39 to ₹41 per share. Interested investors can choose a price within this band to apply for the IPO.  The Nova Agritech Ltd IPO listing price will be determined on the date which is 30 January 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  |Nova AgriTech Limited IPO Lot size  The Nova Agritech Ltd IPO details are declared. The Nova Agritech Ltd IPO lot size is 365 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Nova Agritech Ltd IPO issue size is approx. ₹143 crore.           How to pre-apply for the Nova AgriTech Limited IPO?  You can pre-apply for the Nova AgriTech Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Nova AgriTech Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Nova AgriTech Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Nova AgriTech Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Nova AgriTech Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Nova AgriTech Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Nova AgriTech LimitedIPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Nova AgriTech Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Nova AgriTech Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Nova AgriTech Limited IPO  To apply for the Nova AgriTech Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Nova AgriTech Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Nova AgriTech Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.