The initial public offering (IPO) of Godrej Agrovet Limited (GAVL) was subscribed more than 96 times on Friday with investors bidding for 171.54 crore shares of the 1.80 crore shares on offer. The qualified institutional buyers bid 76.72 crore shares on the third day of the IPO. High Net worth Individuals (HNIs) bid for 88.51 crore shares and retail investors bid for 6.26 crore shares.
On Tuesday, Godrej Agrovet allotted 74.17 lakh equity shares worth Rs 341.19 crore at Rs 460 per share to 25 anchor investors. The government of Singapore, JP Morgan, Goldman Sachs India, ICICI Prudential AMC, SBI Life Insurance, Motilal Oswal, Kotak Mutual Fund, Sundaram MF and Axis Mutual Funds are among the international and domestic anchor investors.
GAVL, a research and development (R&D) focused agri-business company, is planning to raise around Rs 1,177.31 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, the company will be valued at around Rs 8,816.40 crore.
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 (ESPS) at issue price.
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 issued. The company posted a profit of Rs 274.39 crore for the year ended March 2017, against a profit of Rs 261 crore during 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 for the year ended March 2016.
Godrej Agrovet has operations across animal feed, crop protection, oil palm, dairy, poultry and processed foods. In May 2014, GAVL consolidated animal feed R&D initiatives by setting up the Nadir Godrej Centre for Animal Research and Development in Nashik. The company also has research centres for crop protection business at Mumbai and Thane. With regard to oil and palm business, GAVL has R&D centre at Andhra Pradesh which focuses on improving the yield performance of oil palm crop.