1Nova AgriTech IPO: Surging Allotment Vs. Disappointing GMP, Listing Date & Analysis

Nova AgriTech IPO: Allotment on Jan 29.
Grey Market Premium at ₹23, indicating 56% listing pop.
Check allotment via BSE or Bigshare portal.
IPO oversubscribed 109.37 times, with strong bidding.
Analysts advise ‘Subscribe’ due to robust financials.
IPO priced at ₹39-41 per share, aiming to raise ₹143.81 crore.
Funds to be used for subsidiary, capital expenditure, and working capital.
Shares credited by Jan 30, listing on NSE/BSE on Jan 31.

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Nova AgriTech IPO Overview :

Nova AgriTech’s Initial Public Offering (IPO) sparked tremendous investor interest, and the business had a strong market response. Here’s an overview of the most recent developments in Nova AgriTech’s IPO, including allotment status, Grey Market Premium (GMP), and listing date.

Grey Market Premium and Investor Sentiment :

On Friday, Nova AgriTech’s shares were selling at a premium of ₹23 on the grey market, implying a potential listing pop of 56% for investors. The Grey Market Premium (GMP) has stayed consistent throughout the bidding process, indicating high investor confidence in the company’s prospects.

Allotment Status and Process :

The allotment of Nova AgriTech IPO shares will be completed on Monday, January 29. The registrar will oversee a lottery-based procedure for the distribution of shares to investors. To verify the allotment status, investors can use the following methods

BSE Website:

1. Visit the BSE website.

2. Choose the issue name from the dropdown menu.

3.To check the allotment status, enter the application or PAN number.

BigShare Services Limited Portal:

4. Visit Bigshare Services Private Limited’s website.

5. Choose the IPO from the dropdown menu (accessible only if the allotment is complete).

6. Select one of three modes: application number/CAF no, beneficiary ID, or PAN ID.

7. Enter the relevant information.
8. Fill out the captcha correctly for security concerns.
To obtain the allotment status, click Search.

Subscription Details and Analyst Recommendations :

The IPO received considerable subscriptions, with an overall subscription rate of 109.37 times, owing to robust bidding from non-institutional bidders. Qualified Institutional Bidders (QIBs) subscribed 79.31 times, while the retail investor quota was exceeded 77.12 times.

Analysts primarily suggested a ‘Subscribe’ recommendation for the stock, citing Nova’s strong financial performance and sustained growth over the last three years. However, analysts warned investors about the risks connected with the company’s reliance on weather and limited regional revenue sources.

IPO Details and Fund Utilisation :

Nova AgriTech priced its IPO at Rs 39-41 per share, with a lot size of 365 shares available for bidding from January 23 to January 25. The business planned to raise about Rs 143.81 crore through its primary offering, which included a fresh share sale of Rs 112 crore and an offer-for-sale (OFS) of up to 77.58 lakh equity shares.

The proceeds of the ₹14.20 crore fresh issue will be used to invest in Nova Agri Sciences, a subsidiary, to establish a new formulation factory. Nova Agritech plans to invest ₹10.49 crore in capital expenditure and expansion of its formulation plant.

Listing Date and Conclusion :

The basis of allotment will be finalised by January 29, and shares will be credited to demat accounts on January 30. Nova AgriTech’s stock is set to be listed on both the NSE and the BSE on January 31, a significant milestone for the company and its investors.