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.
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.