 "Godrej Agrovet IPO subscribed 52% on first day")
Godrej Agrovet's initial public offer (IPO) received bids for 93.76 lakh shares as compared to 1.8 crore shares on offer on the first day of bidding for the IPO on Wednesday, 4 October 2017, data on NSE showed as at 17:15 IST. The IPO was subscribed 52%. The price band for the IPO has been fixed at Rs 450-460 per share. The IPO opened on Wednesday, 4 October and closes on 6 October 2017.
The IPO comprises of fresh issue of Rs 291.51 crore. The offer also comprises of offer for sale of 1.23 crore shares by V-Sciences Investments Pte Ltd (an indirect wholly owned subsidiary of Temasek Holdings (Private) Limited). The offer also comprises of offer for sale of Rs 300 crore by the promoter, Godrej Industries.
Ahead of the IPO, the IPO committee of the board of directors of Godrej Agrovet at a meeting held yesterday, 3 October 2017, finalized allocation of 74.17 lakh shares to 25 anchor investors at a upper end of the IPO price band at Rs 460 per share aggregating Rs 341.19 crore.
The objects of the issue is to spend around Rs 100 crore on repayment of working capital facilities availed by the company, Rs 150 crore for repayment of commercial papers and rest for general corporate purposes, apart from the benefits of listing the equity shares on the BSE and the NSE and to enhance its visibility and brand image and provide liquidity to its existing shareholders.
Godrej Agrovet reported net profit of Rs 63.54 crore on revenue from operations of Rs 1342.7 crore in Q1 June 2017.
Incorporated in 1991 and a part of Godrej group and promoted by Adi Godrej and Nadir Godrej and Godrej Industries, Godrej Agrovet (GA) is a diversified research and development focused agri business company with operations across five business verticals: animal feed, crop protection, oil palm, dairy and poultry and processed foods.
