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Godrej Industries plans to divest its stake in Godrej Agrovet through an initial public offering and raise ₹400 crore.
Godrej Agrovet is a diversified, research & development-backed agri-business company that caters to animal feed, oil palm plantations, crop protection, hybrid seeds, dairy and processed poultry.
Godrej Industries currently holds 60.8 per cent stake in Godrej Agrovet.
In a filing to the BSE, Godrej Industries informed that its board “has decided to participate in the IPO of equity shares by Godrej Agrovet.” “Our company proposes to sell such number of equity shares in Godrej Agrovat up to ₹400 crore through the offer,” it added.
The board has authorised the management “to consider and finalise the terms and condition” for participation in the offer, it further added.
The public issue may also provide an opportunity to Temasek Holdings Pte Ltd, Singapore’s State-owned investor, to pare its holding in the company. Temasek had picked up 19.99 per cent stake in Godrej Agrovet in 2012-13 for ₹572 crore. “The investment will be a combination of primary and secondary investment with the primary investment intended to support GAVL’s future expansion plans” Godrej had then said.
In 2015-16, Godrej Agrovet had made two acquisitions, Astec LifeScience — a listed niche agro-chemicals company, and Creamline Dairy Products — a prominent dairy company in South India.
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