Nova Agritech
Mainboard₹144 Cr issue
+36.59%
Listing gain over issue price
Issue size
₹144 Cr
1 lot at cut-off
₹14,965
Lot size
365shares
Open
23 Jan 2024
Close
25 Jan 2024
Allotment
29 Jan 2024
Listing
31 Jan 2024
Listing performance
Issue price
₹41
Listed at
₹56
Listing-day close
₹58.79
Latest price
₹21.50
Close on 23 Oct 2026
Listing gain
+36.59%
Return since issue
-47.56%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 23 Jan 2024 – 25 Jan 2024
- Listing date
- 31 Jan 2024
- Face value
- ₹2 per share
- Issue price
- ₹41 per share
- Lot size
- 365 shares
- Total issue size
- ₹144 Cr
- Market cap at offer price
- ₹379 Cr
- Promoter holding
- 84.27% → 59.39% pre-issue → post-issue
- ISIN
- INE02H701025
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Keynote Financial Services Ltd.
- Registered office
- Sy.No.251/A/1, Singannaguda Village, Mulugu Mandal, Siddipet, Telangana
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 1,05,22,220 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 365 shares per lot, in multiples, at ₹41
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 365 | ₹14,965 |
| Retail (max) | 13 | 4,745 | ₹1,94,545 |
| S-HNI (min) | 14 | 5,110 | ₹2,09,510 |
| S-HNI (max) | 66 | 24,090 | ₹9,87,690 |
| B-HNI (min) | 67 | 24,455 | ₹10,02,655 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
1,05,22,220
Anchor portion
₹43.14 Cr
at ₹41 per share
Valuation and performance
Valuation at offer price
₹41 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.14 | 2.24 |
| P/E (×) | 13.06 | 18.30 |
| Price to book (×) | 4.06 | — |
| Market cap | — | ₹379 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 32.08%
- ROCE
- 27.25%
- Debt / equity
- 1.11
- PAT margin
- 9.73%
- NAV per share
- ₹10.19
- Price to book
- 4.06
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Nova Agritech
Nova Agritech Limited (incorporated May 9, 2007; converted to public company September 2018) manufactures, distributes and markets soil health management products, crop nutrition products, bio-stimulant products, bio-pesticide products, Integrated Pest Management products, new technologies, and crop protection products. The company operates through subsidiaries and a network of approximately 11,722 dealers across 16 Indian states and Nepal. As of November 30, 2023, the company and its subsidiary Nova Agri Sciences Private Limited have received 720 product registrations. The company generates revenue through manufacturing and distributing agri-input products to farmers via a dealer network, with revenue from operations of ₹21,055.54 lakhs in FY 2022-23.
Company Analysis
from RHPNova Agritech Limited is an agri-input manufacturer offering soil health management, crop nutrition, crop protection, and bio-pesticide products through a tech-based, farmer-driven solution approach.
Nova Agritech Limited (incorporated May 9, 2007; converted to public company September 2018) manufactures, distributes and markets soil health management products, crop nutrition products, bio-stimulant products, bio-pesticide products, Integrated Pest Management products, new technologies, and crop protection products. The company operates through subsidiaries and a network of approximately 11,722 dealers across 16 Indian states and Nepal. As of November 30, 2023, the company and its subsidiary Nova Agri Sciences Private Limited have received 720 product registrations. The company generates revenue through manufacturing and distributing agri-input products to farmers via a dealer network, with revenue from operations of ₹21,055.54 lakhs in FY 2022-23.
Crop nutritionCrop protectionSoil health managementBio-pesticidesAgri-input manufacturing
Objects of the Issue
- Investment in our subsidiary, Nova Agri Sciences Private Limited for setting-up a new formulation plant ₹1,420.11 lakhs p.26
- Funding Capital Expenditure by our Company, towards expansion of our existing formulation plant ₹1,048.95 lakhs p.26
- Funding of working capital requirement of Our Company ₹2,665.47 lakhs p.26
- Investment in our subsidiary, Nova Agri Sciences Private Limited, for funding working capital requirements ₹4,335.85 lakhs p.26
- General corporate purposes p.26
- Investment in subsidiary Nova Agri Sciences Private Limited for setting-up formulation plant p.61
- Funding Capital Expenditure by our Company towards expansion of formulation plant p.61
- Funding working capital requirements of our Company p.61
- Investment in subsidiary Nova Agri Sciences Private Limited for funding long-term working capital requirements p.61
- General corporate purposes p.61
- Investment in our subsidiary, Nova Agri Sciences Private Limited for setting-up a new formulation plant ₹ 1,420.11 lakhs p.100
- Funding Capital Expenditure by our Company, towards expansion of our existing formulation plant ₹ 1,048.95 lakhs p.105
- Funding of working capital requirement of our Company ₹ 2,665.47 lakhs p.108
- Investment in our subsidiary, Nova Agri Sciences Private Limited for funding working capital requirements ₹ 4,335.85 lakhs p.110
- General corporate purposes [●] p.98
- Investment in NASPL for setting-up a new formulation plant and funding capital expenditure in NATL towards expansion of existing formulation plant p.189
- Funding capex for new manufacturing facility - expansion of manufacturing capacity in Yadagir district, Karnataka for Suspension Concentrate formulations and other advanced formulation types p.319
- Not specified in this section of the document
Issue Structure
- Total Issue
- Up to ₹ [●] lakhs
- Fresh Issue
- Up to [●] Equity Shares aggregating up to ₹11,200.00 lakhs
- Offer for Sale
- Up to 77,58,620 Equity Shares aggregating up to ₹ [●] lakhs by Nutalapati Venkatasubbarao
- Price Band
- Floor Price ₹ [●] and Cap Price ₹ [●] per Equity Share
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares
- Face Value
- ₹2/- per Equity Share
Business Model
The company manufactures and distributes agri-input products (soil health management, crop nutrition, crop protection, bio-pesticides, and related products) through a dealer network across India. It extends credit periods to dealers (typically 3-6 months per crop season based on harvest cycles) and realizes funds post-harvest. The business also includes investment in subsidiaries for crop protection product manufacturing.
Business Segments
Soil health management products
Crop nutrition products
Bio-pesticide products
Crop protection products
Products focused on soil health and sustainability
Products providing crop nutrition and nutrients to plants
Products for crop protection including pesticides and bio-pesticides
Manufactures and sells soil health management products such as organic fertilizers, bio fertilizers and soil conditioners; crop nutrition products such as micronutrient fertilizers, beneficial element fertilizers, straight nitrogen fertilizers, straight potash fertilizers and 100% water soluble NPK fertilizer
Nova Agri Sciences Private Limited (NASPL), a subsidiary, manufactures a wide range of product categories consisting of crop protection products such as insecticides, fungicides, herbicides and plant growth regulators
Manufactures and sells organic fertilizers, bio fertilizers and soil conditioners that add organic matter to soil, increase water-holding capacity and cation exchange capacity, and stimulate microbial activity
Manufactures 100% water soluble NPK fertilizers, micronutrient fertilizers, beneficial element fertilizers, straight nitrogen and potassium fertilizers for plant nutrition across different crop types and application methods
Manufactures insecticides, fungicides, herbicides and plant growth regulators for crop protection; currently manufactured by subsidiary Nova Agri Sciences Private Limited
Manufactures bio stimulants that enhance nutrient uptake, growth, yield and stress tolerance in plants
Manufactures bio pesticides that are biological substances or organisms that damage, kill or repel pests, posing minimal danger to individuals and the environment
Manufactures chromatic traps, pheromone lures, and sticky sheets that use insect hormones to reduce pest populations
Distributes DGCA-approved agricultural drones (Agribot) for fertilizer and pesticide application and offers Bhuparikshak soil health testing devices
Manufacture and sale of herbicides, insecticides, fungicides, plant growth regulators, and bio-pesticides for crop protection
Manufacture and marketing of bio-fertilizers, plant nutrients, and water-soluble fertilizers including Nova Nutri series (NPK), beneficial element fertilizers
Manufacture and sale of agricultural spraying equipment, drones (Nova Agribot), and soil health scanning devices
Products that improve and maintain soil health for sustainable agriculture
Products providing essential nutrients for crop growth and productivity
Bio-pesticides, fungicides, insecticides, herbicides and plant growth regulators manufactured by subsidiary Nova Agri Sciences Private Limited
Manufacturing and marketing of soil health management products, crop nutrition products, bio-stimulant products, bio-pesticide products, Integrated Pest Management (IPM) products, new technologies, and crop protection products
SWOT Analysis
Strengths
- • Established brand presence in South India with quality assurance and product innovation(p.57)
- • Diverse product portfolio across multiple categories with significant registrations(p.56)
- • Wide dealer network across multiple states enabling extensive distribution reach(p.46)
- • Revenue growth trajectory demonstrating operational scaling(p.74)
- • Strong profitability with increasing profit margins(p.74)
- • Diversified branded product portfolio across soil health, crop nutrition, and crop protection(p.118)
- • Established distribution network across geographies through many dealers(p.118)
- • Strong return on equity and capital efficiency(p.119)
- • Technology-driven product development with strong R&D facility(p.118)
- • Farmer outreach through Nova Kisan Seva Kendra(p.118)
- • Focus on sustainable and nutritionally balanced products(p.118)
- • Experienced management team and promoters(p.118)
- • Diversified product portfolio across soil health, crop nutrition, and crop protection(p.179)
- • Extensive product registration portfolio with 720 total registrations(p.182)
- • Established dealer network across 16 Indian states and Nepal(p.182)
- • Farmer outreach program with trained field staff penetrating grassroots level(p.185)
- • In-house R&D facility with state-of-the-art equipment and university partnerships(p.188)
- • Technology-driven solutions including DGCA-approved agricultural drones and soil testing devices(p.186)
- • Strong management team with extensive agrichemical industry experience(p.188)
- • Focus on ecologically sustainable and nutritionally balanced products(p.187)
- • Established R&D capabilities with dedicated facilities and microbiology lab(p.210)
- • Portfolio of 36 registered trademarks across agricultural product categories(p.212)
- • Owned manufacturing facilities with significant leasehold land holdings for R&D(p.214)
- • Environmental sustainability through renewable energy and water conservation(p.210)
- • Comprehensive insurance coverage across facilities and workforce(p.210)
- • Dedicated R&D team focused on product efficacy and cost reduction(p.210)
- • Established product portfolio with 720 registrations across multiple categories(p.328)
- • Extensive dealer network across 16 Indian states and 2 countries(p.328)
- • Improved financial profitability with increasing PAT margins(p.330)
- • Dedicated R&D infrastructure with microbiology lab and 27 dedicated R&D employees(p.335)
- • Technology-driven farmer engagement through NKSK application platform(p.335)
- • Strong revenue growth trajectory with improving operational efficiency(p.330)
Weaknesses
- • High employee attrition rate creating operational risk(p.46)
- • Single manufacturing facility creating production concentration risk(p.46)
- • Significant under-utilization of manufacturing capacity(p.46)
- • High leverage through unsecured loans from related parties repayable on demand(p.47)
- • Delays in compliance with statutory requirements (EPF and GST filings)(p.45)
- • High working capital intensity with substantial inventory and receivables(p.55)
- • Past strikes-off of subsidiary companies for non-compliance with filing requirements(p.45)
- • High dependence on agricultural performance and farmer purchasing power(p.108)
- • Significant working capital requirements due to extended credit periods to farmers(p.108)
- • Limited inventory holding and high inventory carrying costs(p.108)
- • Concentration risk with subsidiary NASPL for crop protection products(p.98)
- • High geographical concentration with significant revenue from three southern states(p.179)
- • Subsidiary NASPL heavily dependent on three southern states for revenue(p.180)
- • Low capacity utilization at manufacturing facilities(p.194)
- • Dependency on imported raw materials for key products(p.205)
- • Relatively modest R&D spending as percentage of revenue(p.188)
- • High employee attrition rate reaching 39% in FY2023(p.211)
- • Significant reliance on temporary workers and outsourced labor(p.211)
- • Promoters have provided substantial personal guarantees on borrowings(p.229)
- • High leverage with significant debt burden relative to equity(p.330)
- • Geographic concentration of revenue in three southern states(p.328)
- • Relatively low capacity utilization indicating unutilized manufacturing potential(p.333)
- • Trade receivables impairment provision indicates collection challenges(p.294)
- • Growing inventory levels relative to sales velocity(p.293)
Opportunities
- • Growing biofertilizer market with significant government support and rising organic farming demand(p.53)
- • Expansion of distribution through technical product imports and registrations(p.50)
- • Innovation in agricultural technology including drone-based crop management solutions(p.58)
- • Pan-India expansion from established South India base(p.57)
- • Capital investment for capacity expansion and working capital improvement(p.47)
- • Growth in micronutrient market driven by soil deficiencies(p.141)
- • Expansion of formulation manufacturing for new product categories(p.100)
- • Growing demand for water-soluble fertilizers due to drip irrigation adoption(p.142)
- • Government initiatives promoting balanced and bio-fertilizers(p.141)
- • Government support for natural farming and sustainable agriculture(p.135)
- • Increasing farmer awareness and adoption of soil testing technologies(p.138)
- • Growth in new product registrations for crop protection(p.100)
- • Expansion of manufacturing capacity to increase market share and product range(p.189)
- • Growth in demand for biofertilizers and organic fertilizers with strong market CAGRs(p.149)
- • Expansion into new geographical markets including Bangladesh, Sri Lanka, Vietnam and Africa(p.191)
- • Rising government support and schemes promoting biofertilizers and modern farming technologies(p.149)
- • Low per hectare pesticide consumption in India compared to global and regional averages(p.162)
- • Growing demand for horticulture and floriculture products with fungicide applications(p.168)
- • Increasing farmer incomes enabling higher input spending(p.154)
- • Expansion of institutional and bulk sales channels(p.191)
- • Expansion into new geographies and distribution channels(p.227)
- • Product innovation across fertilizers, bio-stimulants, and agricultural machinery(p.227)
- • Growth through new manufacturing capacity in Karnataka(p.227)
- • Revenue growth trajectory demonstrating market traction(p.227)
- • Expansion of manufacturing capacity for new formulation types (CS, SE, ZC, WDG)(p.334)
- • Market growth in biological and organic fertilizers segment(p.334)
- • Geographic expansion into newer Indian states and export markets(p.334)
- • Growing market for micronutrients and water-soluble fertilizers(p.334)
- • Precision farming tools and technology platforms for value addition(p.334)
- • High growth in biofertilizer and biopesticide production segments(p.334)
Threats
- • Very low per-hectare pesticide consumption in India versus global standards(p.52)
- • Intense competition from larger pan-India and local agri-input companies(p.57)
- • Regulatory changes in fertilizer and pesticide sectors affecting operations(p.45)
- • License renewal delays and regulatory non-compliance risks affecting subsidiaries(p.45)
- • Dependence on third-party transportation and logistics providers without contractual protections(p.59)
- • Increasing resistance and shift toward alternative pest management methods(p.59)
- • Economic slowdown and monsoon dependency affecting agricultural demand(p.63)
- • Currency volatility and forex exposure from technical imports(p.74)
- • Irregular monsoon and El Niño conditions impacting agricultural output(p.131)
- • External competition from organized and unorganized sectors(p.108)
- • Global economic slowdown affecting export demand(p.131)
- • Commodity price volatility impacting raw material costs(p.131)
- • Regulatory requirements under Fertilizer Control Order(p.145)
- • Competition from established agri-input companies with greater resources(p.209)
- • Regulatory changes and pesticide bans affecting product portfolio and market access(p.172)
- • Fluctuations in agricultural commodity prices affecting farmer purchasing power(p.189)
- • Monsoon and weather dependencies affecting agricultural production and demand(p.150)
- • Foreign exchange fluctuations impacting import costs for raw materials(p.205)
- • Growth of organic farming reducing demand for chemical pesticides(p.169)
- • Availability of genetically modified seeds reducing pesticide requirements(p.169)
- • Supply chain disruptions and global commodity price volatility(p.189)
- • Regulatory control over fertilizer production, pricing and distribution(p.215)
- • Regulatory framework for pesticide and insecticide registration and licensing(p.216)
- • Proposed Pesticides Management Bill could replace current regulatory framework(p.216)
- • Environmental compliance requirements for hazardous waste handling(p.218)
- • Government price control authority over essential commodities(p.215)
- • Restrictions on inter-state movement and export of fertilizers(p.216)
- • Competitive pressure from established players in agritech sector(p.335)
- • Volatility in raw material costs and input prices affecting margins(p.313)
- • Interest rate risk on variable rate borrowings impacting finance costs(p.314)
- • Regulatory compliance and product registration requirements(p.335)
- • Weather and monsoon dependency affecting agricultural sector demand(p.334)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Suraksha Agri Retails (India) Private Limited | Corporate Promoter | 23.60% | — |
| Yeluri Family Trust | Promoter | 47.75% | — |
| Malathi S | Promoter | 12.92% | — |
| Kiran Kumar Atukuri | Promoter | 0% | — |
| Malathi S | Promoter/Whole-Time Director | — | — |
| Kiran Kumar Atukuri | Promoter/Managing Director | — | — |
| Suraksha Agri Retails (India) Private Limited | Promoter | 23.60% | [●] |
| Malathi S | Promoter | 12.92% | [●] |
| Yeluri Family Trust | Promoter | 47.75% | [●] |
| Kiran Kumar Atukuri | Promoter | Nil | [●] |
| Siripurapu Madhuri | Promoter Group | Negligible | [●] |
| Suraksha Agri | Promoter | — | — |
| Suraksha Agri Retails (India) Private Limited | Corporate Promoter | 23.60% | — |
| Yeluri Family Trust | Promoter | 47.75% | — |
| Malathi S | Promoter | 12.92% | — |
| Kiran Kumar Atukuri | Promoter | — | — |
| Malathi S | Promoter | — | — |
| Malathi S | Director/Promoter | — | — |
| Kiran Kumar Atukuri | Director/Promoter | — | — |
| Nadella Basanth Kumar | Director/Promoter | — | — |
| Nutalapati Venkatasubbarao | Selling Shareholder | — | — |
Leadership
Adabala Seshagiri Rao · Chairperson
Kiran Kumar Atukuri · Managing Director
Malathi S · Whole-Time Director (Promoter)
Gunupudi Kamoji Srinivas · Chief Financial Officer
Neha Soni · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Nova Agritech IPO FAQs
What is the lot size of Nova Agritech IPO?
The minimum lot size of Nova Agritech IPO is 365 shares. One lot costs ₹14,965 at the cut-off price.
When does Nova Agritech IPO open and close?
Nova Agritech IPO opened for subscription on 23 Jan 2024 and closed on 25 Jan 2024.
What is the listing date of Nova Agritech IPO?
Nova Agritech IPO listed on 31 Jan 2024.