Check GMP Today for Nova Agritech’s IPO, which has received subscriptions over 5.8 times thus far

Agricultural inputs maker Nova Agritech Ltd.’s initial public offering (IPO), which opened for public subscription on Tuesday, January 23, is attracting a resounding reaction from investors. On the first day of bidding, which ends at 2:15 pm, the Rs 143.81 crore has been subscribed 5.84 times, resulting in offers for 14,33,67,620 shares as opposed to 2,45,52,985 shares.

The January 25th IPO will continue to be available. Days before it went public, the offer garnered little more than Rs 43 crore from anchor investors (IPO). According to a circular posted on the BSE website, the business gave anchor investors 1.05 crore equity shares at a price of Rs 41 each.

There have been 8.83 subscriptions in the retail category and 6.65 subscriptions in the non-institutional investor (NII) quota.

IPO GMP for Nova Agritech Today

Market watchers report that unlisted shares of Nova Agritech Ltd. are still trading on the grey market for Rs. 20 more than the company’s issue price. The grey market anticipates a 48.78% listing gain from the public offering, as shown by the Rs 20 grey market premium, or GMP. The GMP is dynamic and dependent on market mood.

The willingness of investors to pay above the issue price is shown by the “grey market premium.”

Details of Nova Agritech’s IPO

Public subscription for the Rs 144-crore first share sale will begin on January 22 and end on January 24. For the offering, the business has established a price range of Rs 39 to Rs 41 per share.

In addition to an offer-for-sale (OFS) component of 77.58 lakh equity shares by shareholder Nutalapati Venkatasubbarao, who has an 11.9 percent ownership in the firm, the IPO consists of a new issuance of equity shares valued up to Rs 112 crore.

The proceeds of the new offering, which total Rs 14.20 crore, will be used to invest in its subsidiary Nova Agri Sciences in order to establish a new formulation facility. Additionally, Rs 10.49 crore will be used to finance capital expenditures by Nova Agritech in order to expand its current formulation plant.

Additionally, it would utilize Rs. 26.65 crore to finance Nova Agritech’s working capital needs and Rs. 43.36 crore to finance an investment in Nova Agri Sciences. Additionally, a percentage will be used to general business needs.

It is projected that the first public offering would raise Rs 143.81 crore at the top end of the pricing range. The company was founded in 2007 and produces, sells, and uses a broad variety of goods, including integrated pest management (IPM), crop nutrition, biostimulant, biopesticide, and items for soil health management.

Bajaj Capital Ltd. and Keynote Financial Services Ltd. are the issue’s book running lead managers.