Recently-listed Nova Agritech to invest Rs 35.28 crore in subsidiary company

Nova Agritech, an agri-produce company, has informed exchanges that its board of directors has approved an investment of Rs 35.28 crore in its wholly-owned subsidiary - Nova Agri Sciences Private Limited. The company said that the investment will be made through the subscription of 35.28 lakh unsecured optionally convertible debentures (OCDs) of Rs 100 each.

"Investment in Nova Agri Sciences Private Limited (Wholly-owned Subsidiary) upto ₹ 35,28,65,000/- (Rupees Thirty Five Crores Twenty Eight Lakhs Sixty Five Thousand Only) by way of subscription to 35,28,650 Unsecured Optionally Convertible Debentures (OCDs) of face value of ₹100/- each at par, in one or more tranches, based on the recommendation of the Audit Committee of the Company," the company said.

Earlier, the company said that its net profit for the January-March quarter increased by 2.60 per cent to Rs 8.28 crore. The company's net profit in the same quarter in the previous year was Rs 8.07.

However, the sales of the company declined to Rs 70.77 crore in the last quarter of FY2024. It fell 3.28 per cent from 73.17 crore in the same quarter of 2023.

Earlier in January, shares of Nova Agritech made a decent debut on exchanges as they got listed at Rs 56 on the BSE against an issue price of Rs 41 i.e. a premium of 36.59 per cent. The shares opened at Rs 55 on the NSE. 

The Initial Public Offer (IPO) of Nova Agritech got a good response from investors and was subscribed a whopping 109.36 times on the last day of subscription on Thursday, with heavy participation coming in from institutional investors. The Rs 143.81 crore IPO had a price range of Rs 39-41 a share.