1. Godrej Agrovet IPO oversubscribed 94 times at close; heavy bidding by institutions, HNIs

Godrej Agrovet IPO oversubscribed 94 times at close; heavy bidding by institutions, HNIs

Godrej Agrovet IPO which opened on Wednesday for subscription got oversubscribed 59 times on the final day with 2 hours of bidding is still left.

By: | Updated: October 6, 2017 6:00 PM
Photo for representational purposes only. (Image: Reuters)

Godrej Agrovet IPO which opened on Wednesday for subscription got oversubscribed 95.17 times on the final day bidding. The portion set aside for QIBs (qualified institutional buyers) was subscribed 151 times, the shares allocated to non-institutional investors got subscribed 236.04 times while the quantum reserved for retail investors was subscribed 7.21 times as the bidding closes. The bids received for employee category stood at 0.81 times, as per the stock exchange data. The company has set a price range of Rs 450-460 per equity share for its public offer. Godrej Agrovet is the first public offer of Godrej group in 8 years. Godrej Agrovet is an agriculture-business based company incorporated in 1991. Take a look at four key things to know about the share sale.

Anchor investors

Godrej Agrovet has raised about Rs 341 crore from anchor investors ahead of its initial public offer. Over 74.17 lakh shares would be allotted to 25 anchor investors at the upper end of the price band i.e., Rs 460 per equity share, the company said in an exchange filing. At Rs 460, the total amount comes out to be Rs 341.18 crore. The major anchor investors include Reliance Capital Trustee Company, SBI Life Insurance Company, Nomura, Goldman Sachs, Government of Singapore and Birla Sunlife Trustee Company.

IPO proceeds

Each of the selling shareholders will be entitled to the respective portion of the proceeds of the OFS (offer for sale). The company will not receive any proceeds from the OFS. The net proceeds from the fresh issue will be utilised towards repayment of loans and for other general corporate purposes. It includes repayment or prepayment of working capital facilities availed by the company, repayment of commercial papers issued by the company and general corporate purposes which is subject to the applicable laws.

Business profile

Godrej Industries owns 60.81% in Agrovet, which is in businesses such as agri-inputs, animal feeds, palm oil manufacturing, dairy, poultry and processed foods. In the crop protection business, the company manufactures products that cater to the entire crop lifecycle including plant growth regulators, organic manures, generic agrochemicals and specialized herbicides.

Financials

Godrej Agrovet reported a rise of 4.81% in the net profit to Rs 273.53 crore for the financial year ended 31 March 2017 as compared to Rs 260.98 crore in the last fiscal. The company’s total sales grew by 30.53% to for the financial year 2016-2017 to Rs 4,983.3 versus previous year’s Rs 3817.67 crore.

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