The shares of Nova Agritech debuted with a 34% premium on the bourses at Rs 55. On the listing day itself, the stock hit its upper price band of 5% to halt trading at Rs 57.75.
The company’s IPO opened for subscription on January 23 and closed on January. During the subscription period, the issue was reserved for investors: 50% for qualified institutional buyers (QIB), not less than 15% for non-institutional investors (NII), and a minimum of 35% for retail investors.
Nova Agritech’s IPO was set at a price band of Rs 39 to 41 per equity share of a face value of Rs 2. The company raised Rs 43.14 crore from anchor investors. The company allocated over 1.05 crore equity shares at Rs 41 per share to anchor investors.
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The company had witnessed a significant oversubscription of 109.37 times during the offer period, hinting at robust investor confidence in the company’s prospects, said Shivani Nyati, head of wealth at Swastika Investmart.
“This stellar listing was fueled by multiple positive factors, including the company’s strong market position as a one-stop solution provider for crop and soil health through its diverse branded product portfolio. Its well-established geographical presence and effective marketing strategy further enhance its growth potential Come from Sports betting site VPbet . Additionally, Nova Agritech’s consistent financial performance, impressive growth over the past three years, and ambitious expansion plans further bolstered investor sentiment,” she added.
“For existing investors, holding their shares and closely monitoring the company’s performance and market conditions remains the recommended approach,” said Nyati.
According to the company, the net proceeds from the IPO will be used for various purposes, including investments in the subsidiary Nova Agri Sciences for constructing a new formula factory, financing the expansion of an existing formula plant, meeting working capital needs, and supporting general business purposes.
