The company has filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an Initial Public Offering (IPO). The shares of the company are proposed to be listed on NSE and BSE.

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-sale (OFS) of up to 77,58,620 equity shares by Nutalapati Venkatasubbarao.

Manufacturer of agricultural inputs, Nova Agritech Limited offers tech based farmer driven solution for soil health management and crop nutrition as well as its own crop protection products that are ecologically sustainable and are nutritionally balanced.

The company has filed its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an Initial Public Offering (IPO). The shares of the company are proposed to be listed on NSE and BSE.

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-sale (OFS) of up to 77,58,620 equity shares by Nutalapati Venkatasubbarao.

The company and the selling shareholders in consultation with the BRLMs may consider a pre-ipo placement of equity shares of upto Rs 25 crs. If such placement is completed, the issue size will be reduced accordingly.

The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Investors and not less than 35% of the Offer shall be available for allocation to Retail Individual Investors.

Out of the proceeds from the fresh issuance, an amount of Rs. 14.20 crore will be utilised for Investment in its subsidiary, Nova Agri Sciences Private Limited for setting-up a new formulation plant, Rs 10.49 crore for funding Capital Expenditure by the Company, towards expansion of its existing formulation plant, Rs 26.69 crore for funding of working capital requirement, Rs 56.74 for Investment in its subsidiary, Nova Agri Sciences Private Limited for funding working capital requirements and general corporate purposes.

The company was founded in 2007 by Sambasivarao Yeluri and Kalyana Chakravarthy with an objective to become a one-stop solution provider for the farming community.  Its currently being led and promoted by technocrat Kiran Kumar Atukuri who has over 2 decades of experience with agri chemical, seed and fertilizer companies. Nova Agritech 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; and crop protection products through an active network of over 6200 dealerships spread across 16 states across the country.

Focused on R&D it has leased a 66.11 acre land in Valaparla village in Andra Pradesh to test the effectiveness of its products on various crops.

Nova Agritech’s revenue from operations increased by 15.56% to Rs 185.57 crore for the financial year 2021-22 from Rs 160.58 crore for the financial year 2020-21, primarily on account of an increase in business volumes on the back of technical import registrations, foraying into new states like Rajasthan and Odisha and consolidation of business in existing states namely, Karnataka, Maharashtra and Madhya Pradesh whereas Profit after tax increased by 117.30% to Rs 13.69 crore for the financial year 2021-22 from Rs 6.30 crore for the financial year 2020-21.

For the six months ending September 30, 2022 revenue from operations stood at Rs 81.65 crore and profit after tax stood at Rs 6.86 crore.

Keynote Financial Services Limited and Bajaj Capital Limited are the book running lead managers to the issue.