Godrej Agrovet IPO approved by Sebi
New Delhi: Godrej Industries Ltd arm Godrej Agrovet has received Sebi’s go-ahead to raise an estimated Rs1,000-1,200 crore through an initial public offering (IPO).
Godrej Agrovet had filed draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) in July and received its “observations” on 8 September—necessary for any company to launch a public offer as per the latest update with the markets regulator.
The Godrej Agrovet IPO comprises fresh issue of shares worth Rs300 crore besides an offer for sale of scrips of up to Rs300 crore by Godrej Industries and up to 1.23 crore shares by V-Sciences, as per the DRHP. Besides, the company is considering a pre-IPO placement of up to 560,000 equity shares worth up Rs252 crore.
Godrej Industries owns 60.81% in Agrovet, which is in businesses such as agri-inputs, animal feeds, palm oil manufacturing, dairy and poultry. Proceeds of the IPO will be utilised towards repayment of loans and for other general corporate purposes.
According to merchant banking people, the company is expected to garner an estimated Rs1,000-1,200 crore through the IPO. Kotak Mahindra Capital Co., Axis Capital and Credit Suisse Securities (India) Pvt. Ltd will manage the company’s public issue.
The equity shares of the company are proposed to be listed on BSE and NSE.
Earlier in June, Godrej Industries had announced that its board “has decided to participate in the IPO of equity shares by Godrej Agrovet Ltd”.