Amid the ongoing flurry of IPOs, Godrej Industries arm Godrej Agrovet has received capital markets regulator Sebi’s go-ahead to raise an estimated Rs 1,000-1,200 crore through an initial public offering. This will be the first public offer of Godrej group in 8 years. The company had filed draft red herring prospectus (DRHP) with Sebi in July and received its ‘observations’ on 8 September which is very necessary for any company to launch public offer, as per the latest update with the markets regulator.
IPO details and proceeds
Godrej Agrovet’s public issue comprises a fresh issue of shares worth Rs 300 crore besides an offer for sale of scrips of up to Rs 300 crore by Godrej Industries and up to 1.23 crore shares by V-Sciences, as per the DRHP. Besides, the company is considering a pre-IPO placement of up to 5.6 lakh equity shares worth up Rs 252 crore. Proceeds from the IPO will be utilised towards repayment of loans and for other general corporate purposes. The company is expected to garner an estimated Rs 1,000-1,200 crore through the initial public offer. The equity shares of the company are proposed to be listed on BSE and NSE.
Business and Financials
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. Godrej Agrovet had 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.
Kotak Mahindra Capital Company, Axis Capital and Credit Suisse Securities (India) Pvt Ltd will manage the company’s public issue. Earlier in June, Godrej Industries had announced that its board “has decided to participate in the IPO of equity shares by Godrej Agrovet Ltd”.