The Hindu Business Line : Kaveri Seed fixes IPO band at Rs 150-170

Mumbai, Aug. 30 Kaveri Seed Company Ltd, an agri-input company, proposes to enter the capital markets with an initial public offering of 40 lakh equity shares of face value Rs 10 each.

The issue, which is being made through a 100 per cent book building process, opens on September 6 and closes on September 11. The price band has been fixed at Rs 150-170.

Of the total issue, 2 lakh shares have been reserved for eligible employees. Therefore, the net issue to the public is 38 lakh equity shares.

The total issue will constitute 29.20 per cent and the net issue will constitute 27.74 per cent of the fully diluted post issue paid-up capital of the company.

The equity shares are proposed to be listed on the BSE and the NSE.

The company plans to raise between Rs 60 and Rs 68 crore.

Project plans

The net proceeds of the issue will be used for acquisition of farmland for R&D near Hyderabad, Alwar and Ahmedabad, setting up marketing offices and godowns in Delhi, Lucknow, Jaipur, Ahmedabad, and Aurangabad, setting up of corn cobdrying plants in Andhra Pradesh and Karnataka, setting up of a biotechnology lab near Hyderabad, upgradation of existing seed processing plants at Kandalkoi, Gundla Pochampally, Gatla Narsingapur and Bellary, and setting up of a seed processing plant near Hyderabad.

Lead manager

Anand Rathi Securities Ltd, Sobhagya Capital Options Ltd, and SREI Capital Markets Ltd are the book running lead managers to the issue.