Nova Agritech IPO listing date today. Experts predict positive debut of shares; GMP drops

Nova Agritech IPO: Nova Agritech IPO listing date has been scheduled for today (Wednesday, January 31) on the bourses at 10:00 IST. The information on the BSE website states that during Wednesday's deals, Nova Agritech share price will list on the BSE and NSE in a special pre-open session. Nova Agritech share price today will be available for trade from 10:00 IST.

"Trading Members of the Exchange are hereby informed that effective from Wednesday, January 31, 2024, the equity shares of Nova Agritech Limited shall be listed and admitted to dealings on the Exchange in the list of 'T ' Group of Securities," said the company in an exchange filing.

Also Read: Nova AgriTech IPO: GMP jumps ahead of allotment date. How to check allotment status online

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Nova Agritech IPO listing price prediction

Arun Kejriwal, Founder of Kejriwal Research and Investment Services

According to Kejriwal, the public issue received a strong response from investors and was subscribed to about 110 times. The secondary market mood is also supportive.

"I am expecting Nova Agritech IPO listing at a premium of ₹14 to ₹20 per share. This means allottees may expect the Nova Agritech share price to open at ₹55 to ₹61 per equity share," said Kejriwal.

Also Read: Nova Agritech IPO allotment date is likely today. GMP jumps, how to check allotment status online

Amit Goel, Co-Founder and Chief Global Strategist at Pace 360

According to Goel, Nova Agritech is an agri-input manufacturer offering soil health management, crop nutrition, and crop protection products focused on a tech-based farmer-driven solution approach, wherein it mainly offers ecologically sustainable and nutritionally balanced products based on.

The company is operating in a highly competitive segment of agri-input. It posted growth for the last three fiscals, but H1 of FY24 indicates static performance. Based on FY24 annualised earnings, the issue appears fully priced.

"We expect the listing of Nova Agritech could be around ₹66-72. On the listing day, investors who have been allotted shares can book listing gains of around 60%, and for the long term, stock has the potential to go upside, but as the market is overheated, a lot will depend upon the volatility of the market," said Goel.

Dhruv Mudaraddi, Research Analyst, Stoxbox

According to Mudaraddi, Nova Agritech is strategically positioned to capitalise on the substantial growth potential within the Indian agricultural sector, which is projected to grow at a compound annual growth rate (CAGR) of 5.1% over the next five years. The government's focus on enhancing farm productivity, coupled with initiatives like Minimum Support Price (MSP) and natural farming, creates a conducive environment for sustained growth. The company's expansion plans, funded by IPO proceeds, align with the industry's upward trajectory, emphasising the potential for future success.

Financially, Nova Agritech has demonstrated robust and steady revenue growth over the last three years. Notably, the net profit margins have experienced a significant and commendable expansion during this period. With an impressive ROE of 32.1%, ROA of 11.3%, and PAT margins of 9.7%, the company exhibits attractive financial metrics in a highly competitive segment. We believe the company is an attractive proposition considering its reasonable valuation and advise investors who have received allotments to hold shares from a medium-term perspective.

"Nova Agritech IPO received a strong 113 times oversubscription, and we expect a robust listing for the issue when it lists on the bourses on Wednesday. We expect the stock to list at a premium of around 60% to the issue price of ₹41 per share," said Mudaraddi.

Also Read: Nova Agritech IPO last date: Issue oversubscribed 109.37 times; GMP steady

Nova Agritech IPO GMP today

Nova IPO GMP or grey market premium is +13, its fallen sharply from the previous trading sessions. This indicates Nova Agritech share price were trading at a premium of ₹13 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Nova Agritech share price was indicated at ₹54 apiece, which is 31.71% higher than the IPO price of ₹41.

Based on last 23 sessions grey market activities, today IPO GMP points upward and expects a strong listing. The lowest GMP is ₹0, while the highest GMP is ₹23, as per analysts of investorgain.com.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Also Read: Nova Agritech IPO subscription closes today: 7 key things to know from its RHP

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.