Business description from prospectus – Godrej Agrovet is a diversified, research and development focused agri-business company with operations across five business verticals: animal feed (cattle feed, poultry feed, aqua feed and specialty feed), crop protection (plant growth regulators, organic manures, generic agrochemicals and specialized herbicides), oil palm (crude palm oil, crude palm kernel oil and palm kernel cake), dairy (milk and milk based products), and poultry and processed foods. It claims to be the leading compound animal feed company in India, on the basis of installed capacity for the financial year 2016. In Bangladesh, its joint venture, ACI Godrej was the fourth largest feed producer, in terms of sales volume, during the financial year 2016. The company is also the largest crude palm oil producer in India, in terms of market share, as of March 31, 2017.
It has two dedicated R&D centres for crop protection business at Mumbai and Thane, which has enabled the company to launch new products. The oil palm business has a dedicated R&D center at Andhra Pradesh, which is focused on improving the yield performance of oil palm crop and exploring new avenues of value creation from oil palm biomass.
Promoters of Godrej Agrovet – Godrej Industries Limited, Nadir B. Godrej and Adi B. Godrej
Issue Size
Issue size is between Rs 1145 to 1157 Cr.
The public issue of Godrej Agrovet Limited comprises:
- Fresh Issue: Rs 291.51 Cr
- Offer for Sell: Rs 300 Cr by Godrej Industries + 12,300,000 Shares by V-Sciences Investments Pte Ltd.
| Godrej Agrovet IPO details | |
| Subscription Dates | 4 – 6 October 2017 |
| Price Band | INR 450 – 460 per share |
| Fresh issue | INR 291.5 crore |
| Offer For Sale | INR 300 crore + 12,300,000 shares (INR 565.8 crore) |
| Total IPO size | INR 1,157.3 crore |
| Minimum bid (lot size) | 32 shares |
| Face Value | INR 10 per share |
| Retail Allocation | 35% |
| Listing On | NSE, BSE |
Company Strengths:
1. Pan-India presence with extensive supply and distribution network.
2. Diversified businesses with five business verticals.
3. Emphasis on R&D
4. Part of the Godrej group. Part of strong ‘Godrej’ brand.
5. Leading position in the segments it operate.
Objects of the Issue:
The Issue comprises a Fresh Issue and an Offer for Sale.
- Offer for Sale: Each of the Selling Shareholders will be entitled to the respective portion of the proceeds of the Offer for Sale.
- Fresh Issue: Company proposes to utilise the proceeds from the Fresh Issue towards: a. repayment or prepayment of working capital facilities availed; b. repayment of commercial papers issued by the Company; and c. general corporate purposes.
Tentative timetable in respect of the Offer:
- Bid/Offer Opens On: October 04, 2017
- Bid/Offer Closes On: October 06, 2017
- Finalisation of Basis of Allotment: On or about October 12, 2017
- Initiation of refunds: On or about October 13, 2017
- Credit of Equity Shares to demat accounts: On or about October 13, 2017
- Listing on the Stock Exchanges: On or about October 16, 2017
Please contact us today for application at 033 40266300 !!
