India: Godrej Agrovet IPO opens on 4 October

Photo: Reuters

Godrej Agrovet Ltd, the agri-business unit of Godrej Industries Ltd, on Tuesday said it will launch its approximately Rs1,157 crore initial public offering (IPO) on 4 October.

Godrej Agrovet has priced its share in a band of Rs450-460. The IPO will close on 6 October.

The IPO comprises a fresh issue of 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 purposes.

The promoters and investors will collectively sell around 18.82 million shares in the share sale. Promoter Godrej Industries Ltd 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.

GAVL has hired Kotak Mahindra Capital Co. Ltd, Axis Capital Ltd and Credit Suisse Securities (India) Pvt. Ltd to manage its public offering.

Established in 1991, Godrej Agrovet is a diversified, research and development focused agri-business company with operations across five business verticals — animal feeds, crop protection, oil palm, dairy, and poultry and processed foods.

In the fiscal 2016-17, Godrej Agrovet reported a revenue of Rs4,983.5 crore, up 30% from the previous fiscal. The company reported a profit of Rs274.4 crore in 2016-17, up 5% from a year ago.

In 2005, Godrej Agrovet acquired a 26% stake in Creamline Dairy Products Ltd. It further acquired 25% stake in the dairy company for Rs150 crore, Mint reported.

Creamline Diary, a subsidiary of Godrej Agrovet, sells the majority of milk and milk-based products under the Jersey brand across Telangana, Andhra Pradesh, Tamil Nadu, Karnataka and Maharashtra.

In 2008, Godrej Agrovet entered into a joint venture with Tyson India Holding Ltd, a unit of US-based Tyson Foods Inc. The joint venture Godrej Tyson Foods Ltd manufactures and markets processed poultry and vegetarian products through brands Real Good Chicken and Yummiez.

In 2015, Godrej Agrovet acquired a controlling stake in agrochemicals and pharmaceutical intermediates firm Astec Lifesciences Ltd for approximately Rs212 crore. Astec LifeSciences makes agrochemical active ingredients which are sold in India as well as exported.

On Monday, Mint reported that about 50 Godrej group employees have bought shares worth around Rs8.5 crore in a pre-IPO round of Godrej Agrovet. The pre-IPO round saw employees from various group firms including Godrej Consumer Products Ltd, Godrej Properties Ltd, Nature’s Basket, Godrej Tyson Foods and Godrej and Boyce Manufacturing Co. Ltd.

Also Read:

India: Godrej Agrovet looking at $1.27b valuation in IPO

India: Godrej Agrovet, Mahindra Logistics, IEX line up IPOs in Oct

This article was first published on Livemint.com

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.