The agri-business arm of Godrej Industries Ltd., Godrej Agrovet Ltd will open its IPO issue for public subscription on October 4 until October 6. The 1157 crore IPO issue will see sale of as many as 18.82 million shares both from the investors and promoters of the company. Of which, promoter of the company will sell shares of the company worth Rs. 300 crore and the remaining fresh share issue will total to Rs. 291.5 crore. The price band for the issue has been decided at Rs. 450-Rs. 460.
Another investor in the company, Temasek Holdings Pte, will offload 12.3 millio company shares that at the upper end of the price band will fetch as much as Rs565.8 crore to the Singapore investor. After this sale, the company's stake in the company will reduce from the current 20% to 13%.
The managers to the public issue are Axis Capital Ltd, Credit Suisse Securities (India) Pvt. Ltd and Kotak Mahindra Capital Co. Ltd.
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 purposes.
Godrej Agrovet established in the year 1991 is a R&D focused agri-business company that operates in 5 verticals spanning animal feeds, oil palm, dairy, crop protection, processed foods and poultry. The revenue and profits for the fiscal year 2016-17 stood at Rs 4,983.5 crore and Rs.274.4 crore respectively.