Godrej Agrovet (GAVL), the agri-business unit of Godrej Industries, is planning to raise around Rs 1,177 crore from its initial public offering (IPO). The company has set a price band of Rs 450-460 per share for its IPO and, when calculated at the upper band of the issue price, it will be valued at around Rs 8,816.40 crore. The IPO is scheduled to open on October 4 and close on October 6. The issue consists of fresh issue up to Rs 291.51 crore and offer for sale (OFS) up to Rs 300 crore by promoter selling shareholder Godrej Industries and up to Rs 565.8 crore by investor selling shareholder V-Sciences Investments.
The issue also includes a reservation of Rs 20 crore for subscription by eligible employees. V-Sciences Investments, which is the investor selling shareholder, would be selling 1.23 crore equity shares. In addition, the company proposes to issue up to 4,05,500 equity shares to identified companies of the company under the employee stock purchase scheme at its issue price. Bids can be made for a minimum of 32 equity shares and multiples of 32 thereof. Godrej Agrovet is the fourth company of the Godrej Group which would be listed on the bourses. Nadir Godrej, MD of Godrej Industries and chairman of Godrej Agrovet, said, “We are addressing the demand for animal protein, adding new and innovative products for entire lifecycle of cattle and also enhancing the productivity of Indian farmland. From 2013 to 2017, GAVL has delivered 15.8% revenue in the compound annual growth rate.”
The company proposes to utilise the net proceeds of the fresh issue, which is up to Rs 291.51 crore, for repayment of working capital facilities and commercial papers. The company posted a profit of Rs 274.39 crore for the year ended March 2017 against Rs 261 crore the previous financial year. The total income for the year ended March 2017 was Rs 4,983.4 crore against Rs 3,817.6 crore a year ago.