Godrej Agrovet Ltd, the agri-business unit of Godrej Industries Ltd, has announced its Initial Public Offer (IPO) from 04/10/2017 to  06/10/2017  with a price band of Rs. 450/- to Rs. 460/- . The face value of each equity share is Rs 10. Bid lot – 32 Equity Shares and multiple thereof.

Godrej Agrovet’s IPO consists of fresh issue of Rs 291.51 crore and Offer for Sale of Rs 300 crore by Godrej Industries and 12,300,000 equity shares by V-Sciences Investments Pte Ltd. aggregating the issue size of Rs 1157.31 crore. Company will get listed on both BSE and NSE.

Company Background
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.

Animal Feed: The portfolio of products comprises of cattle feed, poultry feed (broiler and layer), aqua feed (fish and shrimp) and specialty feed. It has aggregate production capacity of 23 lakh MTPA, as of June 30, 2017. Also, its joint venture company in Bangladesh named ACI Godrej has two manufacturing facilities with an aggregate production capacity of 5,70,000 MTPA, as of June 30, 2017.

Crop protection: Under this segment, company manufactures a wide range of products that cater to the entire crop lifecycle including plant growth regulators, organic manures, generic agrochemicals and specialized herbicides. It has a major stake in Astec LifeSciences that manufactures agrochemical active ingredients (technical), bulk and formulations and sells its products in India as well as exports them to the United States and countries across Europe, West Asia, South East Asia and Latin America.

Oil palm: Company produces range of products including crude palm oil, crude palm kernel oil and palm kernel cake. It has entered into MOU with nine state governments, which provides an access to ~61,700 hectares under oil palm plantation, which is equivalent to approximately one-fifth of India’s area suitable for oil palm cultivation.

Dairy: It sells milk and milk products under the ‘Jersey’ brand across the states of Telangana, Andhra Pradesh, Tamil Nadu, Karnataka and Maharashtra. Its dairy distribution network includes ~4,000 milk distributors, ~3,000 milk product distributors and 50 retail parlours, as well as direct sales to institutional customers.

Poultry & processed foods: Company manufactures and markets processed poultry and vegetarian products through the brands ‘Real Good Chicken’ and ‘Yummiez’. It has set up two processing plants with integrated breeding and hatchery operations and has a diverse customer base comprising of retail customers as well as institutional clients such as quick service restaurants, fine dining restaurants, food service companies and hotels.
Purpose of the Issue 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.

At upper price band of Rs 460 with EPS of Rs 12.58 (of FY17), its P/E works out at 36.5x. It has very diverse portfolio and we believe that there no listed peers in industry with such varied portfolio mix. Hence, it cannot be determined that the issue price is over-priced or under-priced.

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

Company Promoters:
Mr Nadir B. Godrej and Mr Adi B. Godrej are the promoters of GIL.

Godrej Agrovet IPO details:
IPO Opens on: Wednesday, 4 October 2017
IPO Closes on: Friday, 6 October 2017
Price Band: Rs 450 to Rs 460 per share
Face Value: Rs 10
Issue Size: Initial Public offer for Fresh Issue of Rs 2915.12 million and an Offer for Sale of upto 12,300,000 Equity Shares and upto Rs. 3000 million
Issue Type: 100% Book Building
Bid Lot: 32 Equity Shares and in multiples thereof
Minimum Order Quantity: 32 Equity Shares
Maximum Subscription Amount for Retail Investor: Rs. 2,00,000
Listing On: BSE, NSE

Important dates for Godrej Agrovet Limited IPO Allotment Status:
IPO Opens on: Wednesday, 4 October 2017
IPO Closes on: Friday, 6 October 2017
The Allotment date for Godrej Agrovet Limited IPO issue:  is expected to be Oct 12, 2017.
The amount will get unblocked on:  Oct 13, 2017
The Shares are expected to credited in DP accounts: on Oct 13, 2017
The Shares of Godrej Agrovet Limited is likely to be listed: on Oct 14, 2017 on both BSE and NSE.

Contact information:
Godrej One, 3rd Floor, Pirojshanagar, Eastern Express Highway, Vikhroli (East), Mumbai – 400079, Maharashtra, India
Phone 02225194416
Fax 02225195124
Email gavlinvestors@godrejagrovet.com
Website http://www.godrejagrovet.com/

Name & Address of the Registrar:
Karvy Computer Share Private Limited
Karvy Selenium Tower B, Plot 31-32, Gachibowli, Financial District, Nanakramguda, Hyderabad 500 032, India
Phone +91 40 6716 2222
Email id godrej.agrovet@karvy.com