Godrej Agrovet IPO subscribed 53% on first day
The Godrej Agrovet IPO saw institutional investor subscription of 28% of shares while the retail investor component saw 88% and non-institutional investors portion saw 10%
Mumbai: The initial public offering of Godrej Agrovet Ltd, the agri-business unit of Godrej Industries Ltd, was subscribed 53% on Wednesday, the first day of the share sale, data from stock exchanges shows.
As of 5pm, the portion of shares reserved for institutional investors saw a subscription of 28%, while the portions reserved for retail investors and non-institutional investors were subscribed 88% and 10%, respectively.
Godrej Agrovet has priced its shares in a band of Rs450-460 per share. The IPO will close on 6 October.
The Rs1,157 crore IPO comprises a fresh issue of shares worth Rs291.5 crore. The proceeds from the fresh issue will be used by the company for repayment or prepayment of working capital facilities, repayment of commercial papers issued by the company, and to meet general corporate expenses.
The promoters and investors will collectively sell around 18.82 million shares in the share sale. Promoter Godrej Industries plans to offload shares worth Rs300 crore.
Temasek Holdings Pte, which currently holds 20% in the agri-business company, plans to sell 12.3 million shares, which at the upper end of the price band will fetch the Singapore state-owned investor about Rs565.8 crore.
Temasek invested Rs572 crore in 2012. Post share sale, Temasek will hold 13% in Godrej Agrovet.
Established in 1991, Godrej Agrovet is a research and development-focused agri-business company with operations across five business verticals—animal feed, crop protection, oil palm, dairy and poultry and processed foods.
On Tuesday, Godrej Agrovet raised approximately Rs341.2 crore by selling shares to 25 institutional investors as part of its anchor book allocation.
Institutional investors that participated in the anchor book allocation include the government of Singapore, First State Indian Subcontinent Fund, The India Fund Inc-Aberdeen, Russel Investment Co., Goldman Sachs India and SBI Life Insurance.