Godrej Agrovet Rs 1,160 crore IPO is scheduled to open today, 4 October for the subscription. We take a look at five key things to know about the share sale before you go for the subscription.
Godrej Agrovet Rs 1,160 crore IPO is scheduled to open today, 4 October for the subscription. The company has set a price range of Rs 450-460 per equity share for its public offer. This is the first public offer of Godrej group in 8 years. The IPO will remain open for three days starting from 4 October to 6 October. The company had filed draft red herring prospectus (DRHP) with SEBI (Securities and Exchange Board of India) in July and received its ‘observations’ on 8 September. Godrej Agrovet is an agriculture-business based company incorporated in 1991. The shares of Godrej Agrovet are proposed to be listed on BSE and NSE. We take a look at five key things to know about the share sale before you go for the subscription.
Godrej Agrovet initial public offering is expected to raise up to Rs 1,157.31 crore at the upper end of the price band. The animal-feed producer Godrej Agrovet will sell new shares worth up to Rs 291.51 crore, while its main shareholder Godrej Industries will sell secondary shares of an amount worth Rs 300 crore. A unit of Singapore’s Temasek Holdings will sell up to 1.23 crore shares, which at the upper end of the price range would fetch Rs 566 crore. The bids for the issue can be made for minimum 32 equity shares and in multiples of 32 shares thereafter. Kotak Mahindra Capital Company, Axis Capital and Credit Suisse Securities (India) will manage the company’s public issue. Earlier in June, Godrej Industries announced that its board “has decided to participate in the IPO of equity shares by Godrej Agrovet Ltd”.
Godrej Agrovet has raised about Rs 341 crore from anchor investors ahead of its initial public offer today. 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.
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.
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.
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 in the last year. While company’s total sales grew by 30.53% to Rs 4,983.3 from last year’s sales of Rs 3817.67 crore.