The initial public offering (IPO) of Mumbai-based Godrej Agrovet will open on October 4. The company has fixed the price band
at Rs 450-460 a share.
On Tuesday, the Temasek-backed company said it aimed to raise up to Rs 1,157 crore by selling 25.2 million shares.
This will include a fresh issue of Rs 292 crore and an offer for sale of Rs 865 crore. Godrej Industries, the parent which owns 63.67 per cent in Godrej Agrovet, will sell shares worth Rs 300 crore in the IPO. Private equity major V-Sciences
Investment, investment arm of Temasek, will offload shares worth Rs 565 crore.V-Sciences
had picked up nearly 20 per cent in Godrej Agrovet five years ago, at an average of Rs 154.6 a share. This will mean a threefold gain now as it sells part of this stake, investment banking sources said.
Kotak Investment Banking, Axis Capital and Credit Suisse are managing the IPO that will end on October 6.
Chairman Nadir Godrej said he saw potential in two segments where Agrovet currently operates, animal feeds and crop protection spaces, to take off. This comes as farmers increasingly turn to organised and integrated players to help address their animal protein and agri-input needs, he said.
Around 47 per cent of Godrej Agrovet’s revenue comes from animal feeds business, followed by dairy and crop protection at 23 per cent and 20 per cent, respectively.
It recently acquired Mumbai-based Astec LifeSciences and Creamline Dairy Products, in a bid to grow its business. Godrej said the company would continue to look at acquisitions as it pursues growth aggressively after consecutive good monsoon years.