About the Company:
Nova AgriTech Ltd is an agri-input manufacturer offering soil health management, crop nutrition and crop protection products focused on tech-based farmer driven solution approach.
Company manufactures, distributes and markets a wide range of product categories consisting of soil health management products, crop nutrition products, bio stimulant products, bio pesticide products, Integrated Pest Management products, new technologies and crop protection products.
Company has a total dealer network comprising of approximately 11,722 dealers out of which approximately 6,769 dealers are active to whom we have distributed and sold our products during the current financial year.
Company has a dealer network is currently spread across 16 states of India namely Andhra Pradesh, Telangana, Maharashtra, Karnataka, Madhya Pradesh, Rajasthan, Chhattisgarh, Tamil Nadu, Uttar Pradesh, Odisha, West Bengal, Bihar, Gujarat, Jharkhand, Uttarakhand and Jammu & Kashmir and 02 in Nepal.
Company has also entered into marketing, distribution and supply agreements with certain third parties in Bangladesh, Sri Lanka and Vietnam and are currently awaiting the necessary permission to start business in these jurisdictions.
Company’s major revenue is generated from the distribution of products in the three southern states of Andhra Pradesh, Karnataka and Telangana.
Company’s Background:
Company’s business was started by founders Sambasivarao Yeluri and Kalyana Chakravarthy with an objective to be a one-stop solution provider by offering ecologically sustainable and nutritionally balanced products to the farmers.
Presently, the promoters of Nova Agritech Limited are Suraksha Agri Retail India Private Limited, Yeluri Family Trust, Malathi S and Kiran Kumar Atukuri.
Company’s Manufacturing Facilities:
Company’s registered office and manufacturing facilities are situated at, Sy.No.251/A/1 Singannaguda Village, Mulugu Mandal, Siddipet District, Telangana over an area admeasuring 12 acres and 05 guntas.
Besides the manufacturing facilities, the total area includes warehousing facilities for storage of raw material and finished goods.
Company’s farmer outreach program called Nova Kisan Seva Kendra program (NKSK):
Company runs a farmer outreach program called Nova Kisan Seva Kendra program (NKSK) through which farmers are educated on various crop management practices.
As on November 30, 2023, NKSK team compromises of 24 NKSK Coordinators who are all agri-graduates and are on the payrolls of the Company.
Apart from the NKSK Coordinators, Company also have arrangements with individuals across various states who provide their services to the Company as Kisan Mitras, and Kisan Sevaks catering to the need of the farmers.
The key objective of NKSK is to provide farmers with need-based solutions, products, technologies, methodologies, knowhow and usage skills, thereby enhancing farm yield.
Company has a dedicated in-house Research and Development (“R&D”):
Company has a dedicated in-house Research and Development (“R&D”) and a Quality Control / Quality Assurance facility at the manufacturing facilities to support technology transfer for new products and on-site process improvement incubation centre.
Company also have tie-ups with various universities to get access of process know-how, innovation, R&D, knowledge transfer, technology transfer, product transfer, credit support, man power, development, etc.
Company has also taken on lease 67.13 acres of land at Valaparla Village, Andhra Pradesh as a part of R&D, wherein we test the efficacy of our products on various crops.
Company’s Revenue from various states:
Management Team:
- Mr. Adabala Seshagiri Rao (Designation: Chairperson and Independent Director)
- Mr. Kiran Kumar Atukuri (Designation: Managing Director)
Objectives of the Issue:
Offer for Sale: (Rs.31.81cr)
- Company will not receive any proceeds from the Offer for Sale and the proceeds received from the Offer for Sale will not form part of the Net Proceeds.
Fresh Issue: (Rs.112 cr)
- Investment in subsidiary, Nova Agri Sciences Private Limited for setting-up a new formulation plant.
- Funding Capital Expenditure by our Company, towards expansion of existing formulation plant.
- Funding of working capital requirement of the Company.
- Investment in subsidiary, Nova Agri Sciences Private Limited for funding working capital requirements.
The Net Proceeds are proposed to be utilised in accordance with schedule set forth below: (in Lakhs)
Positives for the Company:
Company intends to import and distribute Technicals in India.
- Company intends to import and distribute Technicals, which will be a prominent factor in the growth of the agriculture sector in India in the near future.
- Company has entered into Registration and Distribution Agreements for import and distribution of Technicals with a Taiwanese entity on April 15, 2022 to act as the distributor for sales and formulation of Butachlor 85% Tech in India for a period of 5 years.
- Company has also entered into an agreement with a Chinese entity on April 15, 2022, to act as the distributor for sales and formulation of Emamectin Benzoate Technical 95% in India for a period of 5 years.
Company plans to Enhance product portfolio by expanding the manufacturing capacities.
- Company intends to invest in NASPL for setting-up a new formulation plant and also funding capital expenditure in NATL, towards expansion of existing formulation plant at company owned property.
- With the proposed expansion of our manufacturing capacity company intends to come up with advanced, safe, effective and efficient mechanism of creating formulated products.
- Company intends to increase the capacity of Suspension Concentrate (SC) formulations and also can add new formulation types like Capsule Suspension (CS), Suspo Emulsion (SE), Mixed formulation of CS&SC (ZC), Water Dispersible Granules (WDG) and Granules, thus allowing company to enhance the product range and production capacity.
- With the proposed expansion of manufacturing capacity, it will help company in increasing the competency level and self- sufficient in many ways across the entire manufacturing cycle of the product.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 30th Sept 23 |
|---|---|---|---|---|
| Revenue | 160.9 | 185.6 | 210.9 | 103.2 |
| Net Profit | 6.30 | 13.68 | 20.48 | 10.38 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Nova Agritech Ltd | 2 | 3.27 | 12.53 | 32.08% | 101.9 |
| Heranba Industries Ltd | 10 | 27.52 | 13.56 | 14.39% | 203.96 |
| Dharmaj Crop Guard Ltd | 10 | 12.03 | 21.89 | 16.30% | 95.10 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 23rd January 2024 |
| Issue Closes on | 25th January 2024 |
| Issue Price | Rs.39- 41 |
| Face Value | Rs.2 |
| Retail Category Allocation | 35 % |
| Minimum Lot | 365 Shares |
| Minimum Investment | Rs.14,965 |
| Issue Constitutes | 37.91% |
| Issue Size | Rs.143 cr ($ 17 million) |
| Market Cap | Rs. 379 cr ($ 45 million ) |
| Listing at | NSE & BSE |
| Equity Shares Offered (Fresh) | 2,73,17,073 |
| Equity Shares Offered (OFS) | 77,58,620 |
| Total Equity Shares Offered (Fresh + OFS) | 3,50,75,693 |
| Equity Shares Prior to the Issue | 6,52,02,740, |
| Equity Shares after the Issue | 9,25,19,813 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 29th January 2024 |
| Initiation of Refunds | on or Before 30th January 2024 |
| Credit of Equity Shares: | on or Before 30th January 2024 |
| Listing Date: | on or Before 31st January 2024 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 3.27 | 12.53 | 32.08% | 10.19 |
| Company Contact Info: |
|---|
| Nova AgriTech Ltd Sy.No.251/A/1, Singannaguda Village, Mulugu Mandal, Siddipet, Medak, Telangana. Tel: +91 84 54253446 E-mail: ipo@novaagri.in Website: www.novaagri.in |
| Registrar to the Issue: |
|---|
| Bigshare Services Private Limited Office No S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre, Mahakali Caves Road, Andheri (East) Mumbai – 400093, India Tel: +91 22 6263 8200; Email: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Check IPO Allotment Status: |
|---|
Bigshare: http://www.bigshareonline.com/IPO/Allotment |
