Nova AgriTech Limited IPO – Get Date, Price, Review and Details

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In this article, we will discuss:

• Introduction
• Objects of Issue
• Key Strengths
• Risks
• Financial Snapshot

Introduction

Nova AgriTech Limited manufactures products that help farmers grow crops better. The main focus is on three things: Soil health, plant nutrition, and crop protection. Leveraging technology, the company collaborates closely with farmers to understand their needs, crafting tailored products that enhance crop growth. Committed to sustainable agriculture, Nova AgriTech combines innovation with farmer partnerships to foster optimal agricultural outcomes.

The company manufactures, distributes, and markets a broad range of product categories, including:

• Soil health products
• Crop nutrition products
• Bio-stimulants
• Biopesticides
• Integrated pest management (IPM) products
• New technologies
• Crop protection products.

The subsidiary Nova Agri Sciences Private Limited is currently responsible for the production of crop protection products.

Objects of Issue:

• Investing in a Subsidiary (Nova Agri Sciences Private Limited) for setting up a new formulation plant (Rs.14.2 crores).
• Funding working capital requirements of the subsidiary (Rs. 43.4 crores)
• Funding Capex for the existing formulation plant of the company (Rs. 10.5 crores)
• Funding working capital requirements of the company (Rs. 26.7 crores)
• Balance general corporate purposes.

Key Strengths:

• One-stop solution for soil health management, crop nutrition, bio-stimulant, bio-pesticides, Integrated Pest Management (IPM), and crop protection through a diversified branded product portfolio.
• Experienced and qualified professional management team with a strong execution track record.
• Distribution network across various geographies through many dealers.
• Strengthening farmer outreach through Nova Kisan Seva Kendra.

Risks:

• High geographical concentration, any adverse developments in this would severely impact the operation and business of the company. 76% of the revenues are generated from the state of Telangana as of 30 ^th Sep 2023.
• Business is subject to climatic conditions. Seasonal variations and unfavorable weather patterns may hurt the business, operations, and financial condition
• The company needs to obtain and maintain a lot of permits and licenses.
• High working capital requirement.

Financial Snapshot: