High demand for new penny stock: Debuts with 43.39 per cent listing gains; locked in upper circuit with over 1,00,00,000 shares bid!

The first half of FY24 maintained the momentum while boasting impressive RoE and RoCE of 38 per cent and 30 per cent respectively.

Today, one of the Top Gainers on BSE, shares of Nova Agritech Ltd was locked in 5 per cent upper circuit to Rs 58.79 per share from its listing price of Rs 55 per share.

Imagine striking gold on day one of an investment! That's exactly what happened to lucky investors who snagged shares in this recent IPO. While they paid Rs 41 per share, the stock skyrocketed to an upper circuit limit of Rs 58.79, a staggering 43.39 per cent gain in just a single day. That translates to a cool Rs 6,493 profit being the lot of 365 shares allocated in their portfolio, a windfall that would leave any investor grinning ear to ear.

Nova Agritech is a leading agri-input manufacturer offering a wide range of products for soil health management, crop nutrition, crop protection, and more. They boast a diverse portfolio with over 600 registered products, a strong dealer network across 17 states, and a subsidiary specializing in crop protection, making them a comprehensive solution provider for farmers across India and Nepal.

Nova Agritech Ltd.'s IPO saw enthusiastic participation from diverse investor segments, with retail investors subscribing 80.20 times, qualified institutions 81.13 times, and non-institutional buyers a remarkable 233.03 times. Notably, bids above Rs 10 lakh (bNII) were subscribed 231.40 times, while bids below Rs 10 lakh (sNII) attracted even higher demand at 236.27 times.

The company's offer combines a fresh issue (whose proceeds will go towards expanding its own formulation plant, funding working capital, investing in a subsidiary's new plant and working capital, and general purposes) with an offer for sale (from which it won't receive any proceeds).

Demonstrating consistent high performance, the company saw top-line revenue soar 13 per cent to Rs 211 crore in FY23 and net profit surge 43 per cent to Rs 20 crore, mirroring FY22's strong growth. The first half of FY24 maintained the momentum while boasting impressive RoE and RoCE of 38 per cent and 30 per cent respectively. With a P/BV ratio of 3.46 times and a PE ratio of 12 based on annualized FY24 earnings, the issue offers compelling value.

Did you receive an allotment in the Nova Agritech Ltd.'s IPO? Do let us know in the comments below

Disclaimer: The article is for informational purposes only and not investment advice.