Nova Agritech's Rs 144-crore IPO to open on Jan 22

New Delhi: Manufacturer of agricultural inputs Nova Agritech Ltd on Wednesday said it has set a price band of Rs 39-41 per share for its Rs 144-crore Initial Public Offering (IPO).

The initial share-sale will open for public subscription on January 22 and close on January 24, the company said.

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.