Agricon Nutritech IPO

About Agricon Nutritech IPO

Agricon Nutritech Limited IPO is an IPO of TBA. It consists of a fresh issue of 40,00,000 equity shares. The listing of shares will take place on TBA. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA, and the initiation of refunds will take place on TBA.

Objective of Agricon Nutritech IPO

• Funding of capital expenditure towards civil construction work to set up a new manufacturing facility.
• Funding of capital expenditure towards the installation of new plant and machinery.
• To meet working capital requirements.
• General corporate purpose.

Industry Outlook

The Indian fertiliser industry is on a robust growth trajectory, projected to reach US$1,658 crore (₹1,38,000 crore) by 2032, with a CAGR of 4.2% from 2024 to 2032. FY24 saw fertiliser production reach 4.52 crore tonnes, reflecting the success of government policies. As the world's second-largest producer of fruits and vegetables, India benefits from initiatives like PM-KISAN and PM-Garib Kalyan Yojana, which enhance farmer liquidity and fertiliser investment, supported by the United Nations Development Programme for their contributions to food security. The geopolitical landscape and domestic production focus, particularly on nano-liquid urea, have significantly influenced India's fertiliser market. The Union Minister of Health and Family Welfare, Mr Mansukh Mandaviya, announced plans to increase the number of nano-liquid urea plants to 13 by 2025, with a production target of 44 crore bottles of 500 ml nano urea and DAP. Aligning with AtmaNirbhar Bharat, urea imports declined by 7%, DAP by 22%, and NPKs by 21% in FY24. The government mandates 100% neem coating on subsidised urea to enhance efficiency and prevent misuse.

Company Information

Agricon Nutritech Limited specialises in supplying micronutrients for soil health solutions. They initially focused on providing micronutrients to sugar mills for sugarcane production, which helped avoid a variety of soil-borne diseases, including wilt disease. Under the leadership of their promoter, Narendra Laljibhai Ghelani, they have broadened their product portfolio to include micronutrients, soluble fertilisers, biofertilisers, and advanced biopesticides. Looking ahead, as they engage in the Nutritech farming approach, their commitment remains to producing organic, nutrient-rich superfoods and fortified foods for the future of sustainable agriculture. They have the advantage as one of the early movers in organic solutions and specialty plant nutrients, allowing them to provide value to their stakeholders. Agricon Nutritech Limited offers a diverse range of products to support various aspects of agriculture. These include soil health management solutions, crop nutrition products, biostimulants, and biopesticides. They offer an extensive range of 30+ products, including solutions for soil health management, crop nutrition, biostimulants, and biopesticides, all designed to support sustainable and productive farming practices with low pesticide residues. Emphasising eco-friendly practices, they promote sustainable agriculture by reducing chemical runoff and preserving soil fertility in the long term for the next generation.

Anchor Investor Information

The Anchor Investor Bid/ Issue Period shall be one Working Day prior to the Bid/ Issue Opening Date.

IPO Registrar and Book Running Lead Managers

Book running lead managers:

Getfive Advisors Private Limited

Registrar for the IPO is Maashitla Securities Private Limited

Business Model

The company earns its revenue through the following sources:

Procuring, distributing, and marketing a wide range of product categories consisting of (a) soil health management products like Organic Potash, Biological-Microbial inoculums, Soil Conditioners, Soil organic carbon, and humic acid-based products; (b) crop nutrition products like Primary Nutrients (NPK), Secondary Nutrients (Ca-Mg-S), Soil Application Mix micronutrients, Nutri kits, Single Micronutrient; (c) biostimulant products; (d) biopesticide products.

Company Growth Trajectory

Total income for the financial year 2023-24 stood at ₹29.91 crores as compared to ₹26.08 crores in the financial year 2022-23, representing an increase of 14.72%. During the financial year 2023-24, the revenue from operations of the company increased to ₹29.91 crores as against ₹26.01 crores in the financial year 2022-23, representing an increase of 15.01%. During the financial year 2023-24, the other income of the company decreased to ₹0.0011 crores as against ₹0.067 crores in the financial year 2022-23, representing a decrease of 98.42%. Restated Profit After Tax (PAT) for the financial year 2023-24 was ₹3.72 crores as compared to restated profit after tax of ₹0.30 crores during the financial year 2022-23.

Company Market Position

Under the leadership of their Promoter, Narendra Laljibhai Ghelani, they have broadened their product portfolio which includes micronutrients, soluble fertilisers, biofertilisers, and advanced biopesticides.

Currently, the company offers a diverse range of over 100 agri-input products and maintains a strong distribution network with more than 1100+ distributors solely in Gujarat. Looking ahead, they plan to expand their reach to pan-India, aiming to serve a broader base of farmers and enhance productivity through education and support.

As of 31st March 2024, the company’s Revenue from Operations, EBITDA and Profit After Tax was ₹ 29.914 crores, ₹ 5.128 crores, and ₹ 3.717 crores, respectively.

How To Check Allotment Status of Agricon Nutritech IPO?

You can check the allotment status of shares either on the website of the National Stock Exchange (NSE) or on the website of the registrar Maashitla Securities Private Limited. To check the status on the NSE website:

• Visit the NSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Agricon Nutritech Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the Maashitla Securities Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Agricon Nutritech Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How to Apply for Agricon Nutritech IPO?

To apply for this IPO:

• Step 1: Log in to your Kotak Neo Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for
• Step 3: Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds
• Step 5: Approve Request: Your funds will be blocked once you approve the mandate request on your UPI