Nova Agritech IPO: Nova Agritech's IPO date is scheduled for today (Wednesday, January 31) on the stock exchange at 10:00 am IST. According to the information on the BSE website, Nova Agritech's share price will list on the BSE and NSE in a special pre-open session during Wednesday's trading. Today's share price of Nova Agritech will be available for trading from 10:00 am IST.
“Trading participants of the Exchange are hereby informed that the shares of Nova Agritech Limited will be listed and admitted to trading in the list of 'T' Group of Securities on the Exchange from Wednesday, January 31, 2024,” the company said in a stock exchange filing.
Also read: Nova AgriTech IPO: GMP jumps ahead of allotment date. How to check quota status online
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Nova Agritech IPO Price Prediction
Arun Kejriwal, Founder, Kejriwal Research and Investment Services
According to Kejriwal, the public issue received great response from investors and was subscribed around 110 times. The mood on the secondary market is also supportive.
“I expect Nova Agritech to be listed at a premium of ₹14 to ₹20 per share. This means that those entitled can assume that the Nova Agritech share price will open at ₹55 tonnes ₹61 per share,” Kejriwal said.
Also Read: Nova Agritech IPO allotment date likely to be today. GMP jumps, how to check quota status online
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Amit Goel, co-founder and chief global strategist at Pace 360
According to Goel, Nova Agritech is an agricultural inputs manufacturer that offers soil health management, crop nutrition and crop protection products that focus on a technology-based, farmer-driven solutions approach, with the company primarily offering environmentally sustainable and nutritionally balanced products.
The company operates in a highly competitive agricultural commodities segment. It has registered growth in the last three financial years, but the first half of FY24 suggests stagnant performance. Based on annualized returns for FY24, the issue appears to be fully priced in.
“We believe that the listing of Nova Agritech may be imminent ₹66-72. On the day of listing, investors allotted shares can see listing gains of around 60% and in the long run, the stock has the potential to rise, but as the market is overheated, a lot will depend on the volatility of the stock market,” Goel said.
Dhruv Mudaraddi, Research Analyst, Stoxbox
According to Mudaraddi, Nova Agritech is strategically positioned to capitalize on the significant growth potential of India's agriculture sector, which is expected to grow at a compound annual growth rate (CAGR) of 5.1% over the next five years. The government's focus on increasing agricultural productivity, coupled with initiatives such as the Minimum Support Price (MSP) and natural farming, is creating an enabling environment for sustainable growth. The company's expansion plans, funded by IPO proceeds, are in line with the industry's upward trend and highlight the potential for future success.
Financially, Nova Agritech has demonstrated robust and consistent revenue growth over the last three years. What is noteworthy is that net profit margins have seen a significant and commendable increase during this period. With an impressive ROE of 32.1%, ROA of 11.3% and PAT margins of 9.7%, the company has attractive financial metrics in a highly competitive segment. We believe the company is an attractive proposition given its reasonable valuation and advise investors who have received allotments to hold shares for the medium term.
“Nova Agritech’s IPO witnessed a strong 113 times oversubscription and we expect the issue to be robustly quoted when it lists on the bourses on Wednesday. We assume that the share will be quoted at a premium of around 60% to the issue price ₹41 per share,” Mudaraddi said.
Also Read: Nova Agritech IPO Final Date: Issue Oversubscribed 109.37 Times; GMP stable
Nova Agritech IPO GMP today
Nova IPO GMP or gray market premium is +13 and has fallen sharply compared to the previous trading sessions. This suggests that Nova Agritech's share price was trading at a premium of ₹13 on the gray market, according to investorgain.com.
Taking into account the upper end of the IPO price range and the current gray market premium, the estimated listing price of Nova Agritech shares has been included ₹54 per piece, which is 31.71% higher than the IPO price of ₹41.
Based on the gray market activity of the last 23 sessions, IPO GMP is pointing higher today and expects a strong listing. The lowest GMP is ₹0, while the highest is GMP ₹23, according to analysts at investorgain.com.
“Gray market premium” indicates investors’ willingness to pay more than the issue price.
Also Read: Nova Agritech IPO subscription ends today: 7 important things to know about its RHP
Disclaimer: The above views and recommendations are those of individual analysts, experts and brokerage firms, not Mint. We recommend that investors consult certified experts before making an investment decision.
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