Godrej Agrovet, the diversified agri-business unit of Godrej Industries and one of the largest feed manufacturers in India debuted on the stock market on Monday after raising Rs 1,157 crore in its initial public offer (IPO) oversubscribing 95.41 times between October 4 and 6.
The scrip listed for a 35 per cent premium to the issue price of Rs 460 at Rs 621. Early trading saw the stock drop below the debut price but by 10:30 am, the stock the was still trading at least 31 per cent above the issue price at Rs 604 on both the BSE and NSE bourses.
QIBs (qualified institutional buyers) and HNIs (high net-worth individuals) had placed bids 150.96 times and 263.04 times, respectively, to the shares on offer. The retail buyer reserve subscribed 7.67 times. According to Bloomberg, at Rs 460, the company held a market cap of Rs 8,800 crores while at Rs 650 that would increase to Rs 12,400 crore.
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’s verticals include animal feed, crop protection, oil palm, dairy and poultry, astec life sciences and Godrej Tyson. The competitors for these verticals are public or private firms and the company has no listed peers.
Estimates of ICICIdirect said the company’s valuation to be Rs 11,012 crore at Rs 575 per share.
The promoter firm Godrej Industries Ltd sold Rs 300 worth stock decreasing its holding in the company to 69 per cent. At 10:15 am, Godrej Agrovet stock was trading at Rs 611.15 per share at the S&P BSE Sensex and NSE.