Godrej Agrovet stock pares listing gains but still up 28% on debut after stellar IPO

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Updated: October 16, 2017 1:16:16 PM

Godrej Agrovet shares marked a strong debut on the bourses after the company's recently concluded IPO saw overwhelming response. The stock of Godrej Agrovet advanced as much as 35% to Rs 621 from its issue price of Rs 460 on BSE.

Photo for representational purposes only. (Image: Reuters)

Godrej Agrovet shares marked a strong debut on the bourses today after the company’s recently concluded IPO saw overwhelming response from investors. The stock of Godrej Agrovet advanced as much as 35% to Rs 621 from its issue price of Rs 460 on BSE. Within minutes of trading 54 lakh shares exchanged hands on both BSE and NSE. Shares of Godrej Agrovet jumped 37% to hit the record high of Rs 629.85. The public offer of Godrej Agrovet subscribed 95.41 times on the final day bidding and mobilised over Rs 79,000 crore for an issue size of Rs 1,158 crore. 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 7.67 times as the bidding closes.

Track live stock quote: Godrej Agrovet Ltd

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 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.

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.

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