Nova Agritech Limited has informed the Exchange about Capacity addition
NOVAAGRI · price
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Nova Agritech Limited has completed setting up two formulation plants using its January 2024 IPO proceeds, with commissioning scheduled from 7th July 2025. The plants are located in Singannaguda Village, Siddipet District, Telangana, and include a new greenfield plant at subsidiary Nova Agri Sciences Private Limited (NASPL) and an expansion of the existing plant at the parent company (NATL). Total investment was ₹24.69 crore from IPO proceeds — ₹14.20 crore invested in the subsidiary and ₹10.49 crore for the parent's expansion — with additional costs funded through internal accruals. Proposed capacity addition is 8,664 MTPA for NATL (taking total to ~14,592 MTPA) and 10,032 MTPA for NASPL (taking total to ~13,270 MTPA). Existing capacity utilisation stood at only around 47-48% as of March 2025, though the company expects the expansion to boost competitiveness and market presence.
This is a positive capacity expansion announcement that nearly doubles the combined manufacturing capability of Nova Agritech and its subsidiary, potentially supporting future revenue growth. However, investors should note that current capacity utilisation is below 50%, so the benefit will depend on the company's ability to ramp up demand and absorb the new capacity efficiently. The use of IPO proceeds for the stated purpose, with no material deviation, is a good governance signal.