Godrej Agrovet Rs 1,200 IPO to open on 4 October: 5 key issues to know


Godrej Agrovet is in companies reminiscent of agri-inputs, animal feeds, palm oil manufacturing, dairy, poultry and processed meals. (Picture: Reuters)

Godrej Industries agri-business firm Godrej Agrovet Rs 1,200 crore IPO will open on 4 October, Wednesday. This would be the first public supply of Godrej group in 8 years, it would stay open for 3 days, ranging from 4 October to six October. The corporate had filed draft pink herring prospectus (DRHP) with Sebi in July and obtained its ‘observations’ on 8 September. Godrej Agrovet is an agriculture-business primarily based firm included in 1991. We check out 5 key issues to know in regards to the share sale.

IPO particulars

Godrej Agrovet public problem contains a recent problem of shares value Rs 300 crore apart from a proposal on the market of scrips of as much as Rs 300 crore by Godrej Industries and as much as 1.23 crore shares by V-Sciences, as per the DRHP. Kotak Mahindra Capital Firm, Axis Capital and Credit score Suisse Securities (India) Pvt Ltd will handle the corporate’s public problem. Earlier in June, Godrej Industries introduced that its board “has determined to take part within the IPO of fairness shares by Godrej Agrovet Ltd”.

Pre-IPO placement

Moreover, the corporate is contemplating a pre-IPO placement of as much as 5.6 lakh fairness shares value up Rs 252 crore. Just lately, about 50 Godrej group staff have reportedly purchased shares value round Rs 8.5 crore within the pre-initial public providing (IPO) spherical of Godrej Agrovet. The participation within the spherical got here from the group corporations which embrace Godrej Shopper Merchandise, Godrej Properties, Nature’s Basket, Godrej Tyson Meals and Godrej and Boyce Manufacturing Firm.

IPO proceeds

Every of the promoting shareholders shall be entitled to the respective portion of the proceeds of the OFS (supply on the market). The corporate won’t obtain any proceeds from the OFS. The online proceeds from the recent problem shall be utilised in the direction of reimbursement of loans and for different common company functions. It consists of reimbursement or prepayment of working capital amenities availed by the corporate, reimbursement of economic papers issued by the corporate and common company functions which is topic to the relevant legal guidelines. The corporate is anticipated to garner an estimated Rs 1,000-1,200 crore by means of the preliminary public supply.

Enterprise profile

Godrej Industries owns 60.81% in Agrovet, which is in companies reminiscent of agri-inputs, animal feeds, palm oil manufacturing, dairy, poultry and processed meals. Within the crop safety enterprise, the corporate manufactures merchandise that cater to all the crop lifecycle together with plant development regulators, natural manures, generic agrochemicals and specialised herbicides.

Financials

Godrej Agrovet had reported an increase of 4.81% within the web revenue to Rs 273.53 crore for the monetary yr ended 31 March 2017 as in comparison with Rs 260.98 within the final yr. Whereas firm’s complete gross sales grew by 30.53% to Rs 4,983.3 from final yr’s gross sales of Rs 3817.67 crore.



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