Godrej Agrovet (GAL), which is in the process of acquiring Mumbai-based company Astec Lifesciences, today said it expects to clock Rs 4,500 crore revenues this year post acquisition.
"In total, we should be doing about Rs 4,500 crore business this year. Last year, it was close to Rs 3,800 crore. One of the reasons for the growth is the acquisition of Astec Lifesciences," GAL managing director Balram Yadav said on the sidelines of an event organised by Poultry India.
Godrej Agrovet today began open offer to shareholders of Astec Lifesciences and plans to acquire up to 50.67 lakh equity shares of Astec at Rs 246.60 per share.
Promoters of Astec agreed to sell 45.29 per cent of the current paid-up equity shares of the company at a price of Rs 190 per share to GAL, which based on information available on BSE, amounts to over 88 lakh shares.
As on June 2015, its total shares were 1,94,55,055. At a price of Rs 190 per share, the transaction value is Rs 167.41 crore.
Post the open offer, GAL's shareholding would go up to 72 per cent, Yadav said, adding that the company expects to grow at 12 to 15 per cent CAGR in both revenues and profits.
He said more than 50 per cent of topline and bottomline is contributed by Animal Feed Division.
To a query, he said the animal feed marker is in downturn and expected to revive in the next two months.
"Now the market is oversupplied. In another six to eight weeks the tide will turn. There will be shortages. Animal protein prices will go up, first chicken, followed by eggs. And probably by April or March milk prices would also start going up," he said.
Yadav said, currently, the oil palm is grown on quasi contract basis in 50,000 acres in five states or six states.
GAL, a part of 4.1 billion Godrej Group, has five core business verticals and had reported nearly Rs 3,800 crore turnover last year.
While Astec Lifescineces, an agrochemcical and pharmaceutical intermediates producer, registered Rs 253 crore of topline.
Astec Lifesciences shares closed 0.37 per cent up at Rs 243.70 apiece on BSE.
