Nova AgriTech is set to finalise the basis of allotment for its recent initial public offering (IPO) on Monday, January 29. Investors who participated in the bidding process can expect to receive messages, alerts, or emails regarding the debit of funds or revocations of the IPO mandate by the end of Monday.
The company, a player in crop nutrition, garnered significant interest from investors during the bidding period.
The Nova AgriTech IPO, which ran from January 23 to January 25, had a price band of Rs 39-41 per share. The company raised approximately Rs 143.81 crore through its primary route, including a fresh share sale of Rs 112 crore and an offer-for-sale (OFS) of up to 77.58 lakh equity shares.
The IPO witnessed a remarkable subscription rate of 109.37 times, with non-institutional bidders leading the way with a subscription rate of 224.08 times. Qualified institutional bidders (QIBs) subscribed 79.31 times, and the portion for retail investors was subscribed 77.12 times.
Despite market volatility, the grey market premium (GMP) for Nova AgriTech rose, reaching a premium of Rs 23 per share. This suggests a potential listing pop of 55-56 per cent. Previously, the GMP for Nova AgriTech was at Rs 20 per share in the unofficial market.
Nova AgriTech, based in Hyderabad and established in May 2007, focuses on three main segments: soil health, plant nutrition, and crop protection. Brokerage firms generally expressed positivity towards the IPO, highlighting Nova AgriTech’s strong business model, focus on the agricultural sector, favourable margins, and potential for expansion. However, some analysts raised concerns about rich valuations and geographical concentration.
The book-running lead managers for the Nova AgriTech IPO are Bajaj Capital and Keynote Financial Services, with Bigshare Services serving as the registrar for the issue. The shares of the company are scheduled to be listed on both the BSE and NSE on January 31, 2024, Wednesday.
Investors who participated in the IPO can check the allotment status on the BSE website’s IPO application check page. By selecting Nova AgriTech Limited under the issue type and entering the application number and PAN card number, investors can access their allotment status.