Animal feed producer Godrej Agrovet Ltd's shares surged as much as 37 per cent on market debut on Monday after an initial public offering of about $179 million.

Godrej Agrovet stock jumped to as much as Rs 630 from its IPO price of Rs 460 after raising Rs 116 crore in the IPO that was subscribed over 95 times earlier this month.

In terms of equity volume, 25.94 lakh shares of the company were traded on the BSE and over one crore shares changed hands on the NSE during the day.

The company’s Rs 1,157 crore IPO was a huge hit and oversubscribed 95.41 times during October 4-6. The price band was fixed at Rs 450-460 per share. Proceeds of the IPO would be utilised towards repayment of loans and other general purposes.

Kotak Mahindra Capital Company, Axis Capital and Credit Suisse Securities (India) Pvt Ltd were the book-running lead managers to the issue.

Godrej Agrovet is an agri-business company with operations across five verticals — animal feed, crop protection, oil palm, dairy, poultry and processed foods.

Analysts at Angel Broking have given the stock a “subscribe" rating, considering the company's diversified business profile, decent margins, strong return ratios, healthy balance sheet and strong history of its parent.

Besides its main animal feed business, Godrej Agrovet is into crop protection, oil palm, dairy and poultry, as well as processed foods.

Indian companies have so far raised around $8 billion in IPOs this year, and look set to surpass the record $8.65 billion raised in 2007.

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