Godrej Agrovet lists at Rs 621, 35% premium against issue price

Angelo Anderson
October 16, 2017

Shares of Godrej Agrovet made a spectacular debut at the bourses on Monday, surging 35 per cent over the issue price of Rs 460. During the day, it soared 36.92 per cent to Rs 629.85.

At NSE, shares of the company debuted at Rs 615.60, zooming 33.82 per cent. The public offer of Godrej Agrovet subscribed 95.41 times on the final day bidding and mobilised over Rs 79,000 crore for an issue size of Rs 1,158 crore.

At 10.50, the share price of the company moved up 121 points to 581 on BSE and 120 to 580 on NSE. The non-institutional investors' segment was subscribed 236 times while the segment reserved for QIBs saw subscription of almost 151 times, reported NDTV.

Godrej Agrovet Ltd is now trading at Rs 571.7, up by Rs 111.7 or 24.28% from its previous closing of Rs 460 on the BSE.

Analysts also said that a consistent margin profile through innovative product launches amid improved operational efficiencies and optimal asset turnovers have led the company to become an extremely capital-efficient firm in the animal feed, oil palm and crop protection verticals. Godrej Agrovet has raised about Rs 341 crore from anchor investors ahead of its initial public offer.

The company was valued at Rs 1,073 crore at the end of quarter ended June and by end of August, the company had amassed a debt of Rs 990 crore. The company will not receive any proceeds from the OFS. It includes repayment or prepayment of working capital facilities availed by the company, repayment of commercial papers issued by the company and general corporate purposes which is subject to the applicable laws.

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