Shares of Nova Agritech made their debut on the stock market on Wednesday with a gain of more than 43 percent. The stock opened at ₹ 56 on BSE and at an IPO price of ₹ 41, fell to a low of ₹ 55 before closing at an intraday high of ₹ 58.79, 43.39% higher than the IPO price. The stock was quoted at ₹ 55 and closed at ₹ 57.75 on the NSE. The IPO received an overwhelming response from all investors and the issue was subscribed more than 109 times. While the high-net-worth portion was subscribed 224 times, the private investment quota received 77.10 offers and qualified institutional buyers 79.31 times.
The soil care, crop nutrition and plant protection products company’s IPO was priced at ₹ 143.81, comprising a fresh issue of ₹ 112 and an offer for sale (OFS) of ₹ 381 Crore. The company raised ₹ 43.14 crore from anchor investors in the IPO fundraising.
The company plans to use the net proceeds of ₹ 14.20 for investments in its subsidiary Nova Agri Sciences to set up a new compounding plant, ₹ 10.49 to finance capital expenditure and expansion of the existing compounding plant. In addition, it will use ₹ 26.65 to finance the working capital requirement of the company and ₹ 43.36 to finance the working capital requirement of Nova Agri Sciences.
