Shares of Nova Agritech debuted at Rs 55 on the National Stock Exchange (NSE) and at Rs 56 on the Bombay Stock Exchange (BSE), which is at a premium of 34.15% and 36.5%, respectively, against the issue price of Rs 41.
The stock hit an upper circuit of 5% post-listing on the exchanges. At 02:45 pm, the stock was trading 5% higher at Rs 57.75 on the NSE.
Nova Agritech’s IPO (initial public offering) comprised a fresh issue of 2.73 crore shares worth Rs 112 crore and an offer-for-sale of 77.58 lakh shares worth Rs 31.81 crore at a price band of Rs 39-41 per share and was open for bidding from January 23 to 25.
The issue received a strong response from investors and received a massive subscription of 113.21 times. Retail investors booked 80.20 times their allotted quota of shares, while high net-worth individuals (HNI) picked 227.19 times the allotted quota.
The company plans to utilise Rs 10.49 crore for funding its capital expenditure and the expansion of its existing formulation plant, Rs 26.65 crore to meet its working capital requirements, Rs 14.20 crore for investment in its subsidiary Nova Agri Sciences to set up a formulation plant and Rs 43.36 crore for investment in Nova Agri Sciences.
The lead book-running managers of the issue were Keynote Financial Services and Bajaj Capital, while Bigshare Services was the registrar.
Established in May 2007, Nova Agritech offers soil health management, plant nutrition and crop protection through an extensive dealer network of approximately 11,722 dealers spread across 16 states in India and two in Nepal.