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Godrej Agrovet to raise ₹600 cr via IPO

| Updated on: Jan 11, 2018

To consist of ₹300 cr fresh issue, ₹300 cr through divestment by promoter Godrej Industries

Godrej Agrovet, a subsidiary of Godrej Industries, has filed draft red herring prospectus with SEBI for raising ₹300 crore through issue of fresh equity shares.

This apart, Godrej Industries, which owns 60.8 per cent in the company, will raise ₹300 crore by partially offloading its holding. V-Sciences Investments Pte Ltd, a subsidiary of Singapore-based investment company Temasek, will sell 1.23 crore equity shares. Temasek acquired 20 per cent stake in Godrej Agrovet in 2012 for ₹572 crore.

The issue includes a reservation of shares worth ₹20 crore for subscription by employees and another 4,05,500 shares for select staff under the Employees Stock Purchase Scheme at the issue price.

Before filing the DRHP, the company plans to sell 5.60 lakh shares for consideration of ₹25.2 crore.

If the pre-IPO placement is completed, the number of equity shares sold through issue of fresh equity will be reduced, subject to a minimum issue size of 10 per cent of the post-issue paid-up equity share capital of the company being offered to the public.

Lead managers, registrars

The company has appointed Kotak Investment Banking, Axis Capital and Credit Suisse as book-running lead managers and Karvy Computershare as registrar of the issue.

A diversified agriculture business company with interests in hybrid seeds, animal feeds, palm oil manufacturing, dairy and poultry registered 4 per cent increase in profit at ₹273 crore (₹261 crore) in FY17. Revenue was up 31 per cent last fiscal to ₹4,983 crore (₹3,818 crore) with revenue rising 4 per cent to ₹1,025 crore in the March quarter.

The company has a joint venture with Tyson Foods of the US to manufacture and market processed poultry and vegetarian products. Godrej Tyson Foods sells protein products under the Real Good Chicken and Yummiez brand names.

Godrej Agrovet acquired 52.28 per cent stake in Astec Lifesciences for ₹201 crore to strengthen its agro-chemical play. Started in 1994, Astec Lifesciences has three plants at Mahad besides one R&D centre on the outskirts of Mumbai.

In 2015, the company had acquired controlling stake in Creamline Dairy Products, a regional dairy company operating from South India.

Published on July 19, 2017
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