Ahead of IPO, Nova Agritech raises over Rs 43 crore from anchor investors

Nova Agritech IPO: Manufacturer of agricultural inputs Nova Agritech Ltd on Friday raised a little over Rs 43 crore from anchor investors, days before its initial public offering (IPO).

The company allocated 1.05 crore equity shares at Rs 41 apiece to anchor investors, according to a circular uploaded on BSE's website.

At this price, the aggregate transaction size has been pegged at Rs 43.14 crore, it showed.

Foreign investors and domestic institutional investors who have been allotted shares are - Quantum - State Investment Fund, Neomile Growth Fund, AG Dynamic Funds limited and Saint Capital Fund.

The Rs 144-crore initial share-sale will open for public subscription on January 23 and conclude on January 25. The company has set a price band of Rs 39 to Rs 41 per share for the issue.

The IPO comprises fresh issue of equity shares worth up to Rs 112 crore and an offer-for-sale (OFS) component of 77.58 lakh equity shares by a shareholder Nutalapati Venkatasubbarao, who owns 11.9 per cent stake in the company.

Proceeds from the fresh issue worth Rs 14.20 crore will be utilised for investment in its subsidiary Nova Agri Sciences for setting up a new formulation plant, Rs 10.49 crore for funding capital expenditure by Nova Agritech and towards expansion of its existing formulation plant.

It will also use Rs 26.65 crore for funding of working capital requirements of Nova Agritech and Rs 43.36 crore for investment in Nova Agri Sciences for funding working capital requirements. Besides, a portion will be used for general corporate purposes.

At the upper-end of the price band, the maiden public issue is expected to mobilise Rs 143.81 crore.

Incorporated in 2007, the firm manufactures, distributes and markets a wide range of product categories consisting of soil health management products, crop nutrition, bio stimulant, bio pesticide, integrated pest management (IPM) products and crop protection products.

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