Nirman Agri Genetics’ initial public offering (IPO) will hit Dalal street on Wednesday, March 15. The agri-input company is eyeing to raise Rs 20.30 crore from its initial stake sale, which can be subscribed till Monday, March 20.
Incorporated in 2020, Nirman Agri Genetics is engaged in the business of production, processing, and marketing of high-quality hybrid seeds, pesticides, and bio-organics, which are used for different crops like corn, sunflower, cotton, paddy, grain sorghum, among others.
The issue entirely consists of sale of 20,50,800 fresh equity shares for a fixed price of Rs 99 apiece. The company has fixed its lot size for 1,200 equity shares with each lot costing Rs 1,18,800 apiece. Retail investors can be only for one lot, while HNI investors can make a bid for a maximum of two lots or 2,400 equity shares.
Nirman Agri Genetics is commanding a premium of Rs 3-5 per share in the grey market ahead of its issue, signaling some initial buying interest by the investors. However, this may change over the next few days, until its listing.
The net proceeds from the issue will be utilized towards investment in strategic acquisition or joint-venture, purchase of computer and other hardware, fuding additional working capital requirements and general corporate purposes.
Nirman Agri Genetics recently forayed into micronutrients and bioproducts; and also produce non-hybrid seeds, primarily for paddy. The company currently has production, outsourced processing, and R&D facilities in Nashik and Nimgul, Maharashtra, Gujarat, and Madhya Pradesh.
The company has reserved 1,04,400 shares for the market maker portion (NNM Securities). A net 50 per cent of shares in the issue are reserved for retail investors, whereas remaining 50 per cent shares are reserved for HNI investors.
Nirman Agri Genetics reported a net profit at Rs 2.56 crore with a total revenue of Rs 13.49 crore for the year ended on March 31, 2022. It clocked a net profit at Rs 2.30 crore with a revenue at 18.04 crore for the period ended on October 31, 2022.
First Overseas Capital is the sole book running lead manager to the issue, whereas Bigshare Services has been appointed as the registrar to the issue. Shares of Nirman Agri Genetics will be listed on the SME platform of National Stock Exchange (NSE).
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