Nova Agritech To Invest Rs 35.28 Cr In A Subsidiary After 6 Months of Listing On D-Street

Nova Agritech has informed the stock market that the proposed investment will be completed in the next 1 year in multiple phases. Convertible debentures can be redeemed anytime within 36 months of issuance. Nova Agri Science currently has 291 molecule registered pesticides. These are used in the agricultural sector of India to protect crops. The company wants to move forward with its operations through business development and registration and regulatory compliance.

Nova Agri Science Company will be a wholly owned subsidiary of Nova Agritech with an authorized share capital of Rs 5 crore and a paid-up share capital of Rs 1.80 crore. The turnover of this company is Rs 111.66 crore. The company's profit before tax is Rs 12.96 crore and the profit after tax is Rs 9.76 crore. This company also operates in the fertilizer and agri-input industry.

Shares of Nova Agritech Limited, which has given bumper returns to stock market investors in the short term, have given a bumper return of 28 per cent to investors from the level of Rs 50 on May 24. Nova Agritech's IPO came at a price of Rs 41, from where investors have got a return of more than 60 per cent so far. Nova Agritech is an agri-producer company with a market cap of around Rs 580 crore, whose shares have a 52-week high of Rs 77 and a 52-week low of Rs 45. Nova Agritech Limited came up for listing in the stock market in January 2024 at a price of Rs 39 to Rs 41 per equity share.

Recently, the small-cap company declared its fourth quarter results for the financial year 2023-24 at the end of May 2024. In the Q4 results in 2024, Nova Agritech declared a total income of Rs. 57.55 crore in the fourth quarter of FY24, which was a substantial increase from Rs. 50.72 crore in Q3FY24. This represents a quarter-on-quarter (QoQ) rise of around 13.50 per cent in the company's total income. Comparatively, in Q4FY23, the company's total income was Rs. 36.16 crore, indicating a year-on-year (YoY) growth of around 60 per cent in the company's total income in Q4FY24. This significant increase in total income reassures the audience about Nova Agritech's financial stability and growth potential.

On January 31, Nova Agritech's shares were listed at a premium of 35 per cent. Nova Agritech Limited has informed the stock market that in the board meeting held on Saturday, its board approved an investment of Rs 35.28 crore in a subsidiary company Nova Agri Science Private Limited. The company is going to make this investment through 35.28 lakh unsecured convertible debentures. These convertible debentures of Rs. 100 face value will be issued in one or more phases on the recommendation of the audit committee.

Incorporated in May 2007, Nova AgriTech manufactures products that help farmers grow crops better. Hyderabad-based Nova AgriTech mainly focuses on three things- soil health, plant nutrition and crop protection. The products are manufactured using technology and are designed to be environmentally friendly and nutritious.