Nova Agritech stock closes with 39% listing gains on debut day

• The stock closed at ₹57, as compared to its issue price of ₹41.
• The market capitalization of the company is at ₹518 crore, as per Bombay Stock Exchange.
• The issue was subscribed 113x, with good interest from retail as well as institutional investors.

Agri input manufacturer Nova Agritech landed a surprise by providing 39% listing gains to its investors on Wednesday. This is ahead of the grey market’s expectations of 37% listing gains.

The stock closed at ₹57 as compared to its issue price of ₹41. The market capitalization of the company is at ₹518 crore, as per Bombay Stock Exchange.

The ₹143.81 crore issue was subscribed 113 times the shares of the offer with good response from institutional and retail investors. It also raised ₹43.14 crore from anchor investors like Quantum-State Investment Fund, Neomile Growth Fund, AG Dynamic Funds Limited and Saint Capital Fund ahead of the IPO.

The listing performance of companies in 2024 has been mixed in 2024, even as 2023 companies had stellar performance. EPACK Durable fell as much as 10% on Tuesday, as the benchmark indices were on a freefall.

Here are the listing gains of the last few market debuts

The IPO is a mix of fresh issue and an offer-for-sale (OFS). It plans to use net proceeds from the fresh issue as investment in its subsidiary, Nova Agri Sciences, establish a new formulation plant, and expand its current formulation plant.

Nova Agritech operates as an agri-input manufacturer specialising in soil health management, crop nutrition, and crop protection products. The company adopts a technology-driven, farmer-centric approach, emphasising ecologically sustainable and nutritionally balanced solutions developed through its research and development initiatives.

The company engages in the manufacturing, distribution, and marketing of various product categories, including soil health management, crop nutrition, bio stimulants, bio pesticides, Integrated Pest Management (IPM), new technologies, and crop protection. Currently, its subsidiary, Nova Agri Sciences, handles the production of crop protection products.

As of November 30, 2023, Nova Agritech holds a total of 720 product registrations, spanning diverse categories such as soil health management, crop nutrition, bio pesticides, technical indigenous manufacturing, and crop protection. These registrations include 7 in soil health management, 176 in crop nutrition, 4 in bio pesticides, 7 in technical indigenous manufacturing, and 526 in crop protection.

Nova Agritech's revenue from operations increased by 13.47% to ₹210.55 crore for the financial year 2022-23 from ₹185.56 crore for the financial year 2020-21. This growth was primarily driven by an increase in business volumes due to technical import registrations, expansion into new states like Tamil Nadu, and the consolidation of business in existing states, namely Telangana, Andhra Pradesh, and Karnataka.

The profit after tax also witnessed a significant rise, increasing by 49.69% to ₹20.49 crore for the financial year 2022-23 from ₹13.69 crore for the financial year 2021-22.