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Initial Public Offering of Nova Agritech Limitedto open on Monday, January 22, 2024, price band set at ₹39/- to ₹41/- per Equity Share

Mumbai, January 17, 2024: Agri-input manufacturer, Nova Agritech Limited (“the Company”) which offers soil health management, crop nutrition and crop protection products focused on tech-based farmer driven solution approach, hasfixed the price band of 39/- to 41/- per Equity Share of face value ₹2/- each for its maiden initial public offer. The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Monday, January 22, 2024, for subscription and close on Wednesday, January 24, 2024. Investors can bid for a minimum of 365 Equity Shares and in multiples of 365 Equity Shares thereafter.

The issue consists of a fresh issue of equity shares aggregating to 11,200 Lakhs and an offer-for-sale (OFS) of up to 77,58,620 equity shares by the selling shareholder NutalapatiVenkatasubbarao.

Out of the net proceeds from the fresh issue, an amount of 1,420.11 Lakhs will be utilised for investment in its subsidiary, Nova Agri Sciences Private Limited for setting-up a new formulation plant, 1,048.95 Lakhs for funding Capital Expenditure by the Company, towards expansion of its existing formulation plant, 2,665.47 Lakhs for funding its working capital requirement of the Company, 4,335.85Lakhs for investment in its subsidiary, Nova Agri Sciences Private Limited for funding working capital requirements and the balance amount from the net proceeds will be utilised for general corporate purposes.

Incorporated in 2007 with an objective to become a one-stop solution provider for the farming community, the Company manufactures, distributes and markets a wide range of product categories consisting of (a) soil health management products; (b) crop nutrition products; (c) bio stimulant products; (d) bio pesticide products (e) Integrated Pest Management products; (f) new technologies; and (g) crop protection products.

As on November 30, 2023, the Company has received a total of 720 product registrations comprising of 7 registrations in the soil health management category, 176 registrations in the crop nutrition category, 4 registrations in bio pesticide category, 7 registrations under Technical Indigenous Manufacture and 526 registrations in the crop protection category. In addition to this, the Company has applied for 22 new registrations whereas its subsidiary Nova Agri Sciences Private Limited has applied for 14 new registrations for newproducts across various categories.

It has a total dealer network comprising of approximately 11,722 dealers out of which approximately 6,769 dealers are active to whom it has distributed and sold its products during the current financial year. Its dealer network is currently spread across 16 states of India. It has also entered into marketing, distribution and supply agreements with certain third parties in Bangladesh, Sri Lanka and Vietnam and are currently awaiting the necessary permission to start business in these jurisdictions.

The Company also runs a farmer outreach program called Nova Kisan Seva Kendra program (NKSK) through which they educate farmers on various crop management practices.The key objective of NKSK is to provide farmers with need-based solutions, products, technologies, methodologies, knowhow and usage skills, thereby enhancing farm yield. The Company also provides farming inputs to farmers regarding the appropriate amount of dosage and application of theirproducts through IOT based solutions such as the soil healthscanning device called “NOVA BHUPARIKSHAK” and also the drones called as “NOVA AGRIBOT”.

Nova Agritech’s revenue from operations increased by 13.47% to ₹ 21,055.54 Lakhs for the financial year 2022-23from ₹ 18,556.77 Lakhs for the financial year 2021-22, primarily on account of an increase in business volumes on the back of technical import registrations, foraying into new states like Tamil Nadu and consolidation of business in existing states namely, Telangana, Andhra Pradesh and Karnataka. Profit after tax increased by 49.69% to Rs 2,048.95 Lakhs for the financial year 2022-23 from Rs 1,368.93 Lakhs for the financial year 2021-22.

For the six months ending September 30, 2023 revenue from operations stood at Rs 10,321.60 Lakhs and profit after tax stood at Rs 1038.22 Lakhs.

Keynote Financial Services Limited and Bajaj Capital Limited are the book running lead managers to the issue.

The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the Offer shall be available for allocation to Non-Institutional Investors and not less than 35% of the Offer shall be available for allocation to Retail Individual Investors.

Disclaimer: NOVA AGRITECH LIMITED is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its Equity Shares and has filed a red herring prospectus (RHP)dated January 12, 2024 with the RoC. The RHP is made available on the website of the SEBI at www.sebi.gov.in as well as on the website of the BRLMs i.e., Keynote Financial Services Limited at https://keynoteindia.net and Bajaj Capital Limited at www.bajajcapital.com, the website of the NSE at www.nseindia.com and the website of the BSE at www.bseindia.com and the website of the Company at www.novaagri.in. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risks, please see the section titled “Risk Factors” beginning on page 29 of the RHP. Potential investors should not rely on the DRHP for making any investment decision but can only rely on the information included in the Red Herring Prospectus. This announcement has been prepared for publication in India and may not be released in the United States. This announcement does not constitute an offer of securities for sale in any jurisdiction, including the United States, and any securities described in this announcement may not be offered or sold in the United States absent registration under the US Securities Act of 1933, as amended, or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the Company and that will contain detailed information about the Company and management, as well as financial statements. However, no offering of securities is being made in the United States.

LISTING: The Equity Shares, once offered through the RHP are proposed to be listed on the Stock Exchanges. Our Company has received ‘in-principle’ approvals from the BSE and the NSE for the listing of the Equity Shares pursuant to letters dated June 01, 2023 and May 31, 2023, respectively. For the purposes of the Offer, the Designated Stock Exchange shall be BSE Limited. A copy of the RHP and the Prospectus has been or shall be filed with the RoC in accordance with Sections 26(4) and 32 of the Companies Act, 2013. For further details of the material contracts and documents available for inspection from the date of the RHP until the Bid/ Offer Closing Date, see “Material Contracts and Documents for Inspection” on page 447 of the RHP.

DISCLAIMER CLAUSE OF SECURITIES AND EXCHANGE BOARD OF INDIA (“SEBI”): SEBI only gives its observations on the offer documents and this does not constitute approval of either the Offer or the specified securities stated in the Offer Document. The investors are advised to refer to page 384 of the RHP for the full text of the disclaimer clause of SEBI.

DISCLAIMER CLAUSE OF BSE (the Designated Stock Exchange): It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the RHP has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the RHP. The investors are advised to refer to the page 387 of the RHP for the full text of the disclaimer clause of BSE.

DISCLAIMER CLAUSE OF NSE: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to page 387 of the RHP for the full text of the disclaimer clause of NSE.

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