Fertilizer Stock Hit 5% Circuit After 6 Days of Listing; Gain 73% From IPO Price

On Tuesday, Nova Agritech Ltd opened on the BSE at Rs 70 apiece and rallied to hit 5%. upper circuit limit at Rs 71.19 which was also its fresh 52-week-high level. The rally in the stock price was witnessed after 6 days of listing on the bourses. The market cap of Nova Agritech reached Rs 658.65 Cr during the afternoon deals of Tuesday's trading session.

On January 31, 2023, the share price of Nova Agritech had a spectacular debut on the stock exchanges. The listing price of Nova Agritech was 34.1% higher on the NSE, at Rs 55 than the issue price of Rs 41. The listing price of a Nova Agritech share on the BSE was Rs 56 per share, which was 36.6% more than the issue price.

The book-built issue of Rs 143.81 crores represents the Nova AgriTech IPO which consisted of an offer for sale of 0.78 crore shares, valued at Rs 31.81 crores, and a fresh issuance of 2.73 crore shares, valued at Rs 112.00 crores. The bidding for the Nova AgriTech IPO began on January 23, 2024, and it ended on January 25, 2024. On Monday, January 29, 2024, the allotment for the Nova AgriTech IPO was completed, and on January 31, 2024, the shares were listed on the BSE and NSE. The IPO price band for Nova AgriTech was established at Rs 39 to Rs 41 per share, which indicates that the stock surged 73% in just 6 days from its IPO price after reaching a new 52-week high today.

As per the DRHP, the net proceeds Nova Agritech IPO will be used for the investment to establish a new formulation factory and working capital requirements through the subsidiary Nova Agri Sciences Private Limited, for funding capital expenditure towards expansion of the existing formulation plant, funding working capital requirements, and general corporate purposes.

The firm is an agri-input manufacturer that specialises in tech-based farmer-driven solutions for soil health management, crop nutrition, and crop protection. Its R&D-based products are primarily environmentally sustainable and nutritionally balanced. A broad range of product categories are produced, distributed, and marketed by the company.

These include products for managing soil health, crop nutrition, biostimulants, biopesticides, integrated pest management (IPM), new technologies, and crop protection. Currently, its subsidiary Nova Agri Sciences Private Limited produces crop protection products.