Godrej Agrovet IPO

Godrej Agrovet IPO

Godrej Agrovet IPO

Business description from prospectus - Godrej Agrovet is a diversified, research and development focused agri-business company with operations across five business verticals: animal feed (cattle feed, poultry feed, aqua feed and specialty feed), crop protection (plant growth regulators, organic manures, generic agrochemicals and specialized herbicides), oil palm (crude palm oil, crude palm kernel oil and palm kernel cake), dairy (milk and milk based products), and poultry and processed foods. It claims to be the leading compound animal feed company in India, on the basis of installed capacity for the financial year 2016. In Bangladesh, its joint venture, ACI Godrej was the fourth largest feed producer, in terms of sales volume, during the financial year 2016. The company is also the largest crude palm oil producer in India, in terms of market share, as of March 31, 2017.

It has two dedicated R&D centres for crop protection business at Mumbai and Thane, which has enabled the company to launch new products. The oil palm business has a dedicated R&D center at Andhra Pradesh, which is focused on improving the yield performance of oil palm crop and exploring new avenues of value creation from oil palm biomass.

Promoters of Godrej Agrovet - Godrej Industries Limited, Nadir B. Godrej and Adi B. Godrej

Godrej Agrovet IPO details
Subscription Dates4 - 6 October 2017
Price BandINR450 - 460 per share
Fresh issueINR291.5 crore
Offer For SaleINR300 crore + 12,300,000 shares (INR565.8 crore)
Total IPO sizeINR1,157.3 crore
Minimum bid (lot size)32 shares
Face Value INR10 per share
Retail Allocation35%
Listing OnNSE, BSE
Godrej Agrovet's financial performance (in INR crore)
FY2013FY2014FY2015FY2016FY2017
Total revenue2,771.63,117.43,325.53,817.74,983.3
Total expenses2,634.12,928.93,108.33,608.54,649.4
Profit after tax96.6156.5210.0261.0273.5

Godrej Agrovet Contact Details

Godrej Agrovet Limited 
Godrej One, 3rd Floor
Pirojshanagar, Eastern Express Highway
Vikhroli (East), Mumbai 400 079

Phone: +91 22 2519 4416
Fax: 
+91 22 2519 5124
Email:
[email protected]
Website: www.godrejagrovet.com

Registrar of Godrej Agrovet IPO

Karvy Computershare Private Limited
Karvy Selenium Tower B, Plot 31-32,
Gachibowli, Nanakramguda,
Hyderabad – 500 032, Telangana

Phone: +91 40 6716 2222 
Fax:
 +91 40 2343 1551 
Email:
 [email protected]
Website: www.karvycomputershare.com

Valuation of Godrej Agrovet (Based on latest FY)

Earnings Per Share (EPS): INR10.92

Price/Earnings (P/E) ratio: 41.2 - 42.12

Return on Net Worth (RONW): 22.68%

Net Asset Value (NAV): INR54.49 per share

Godrej Agrovet IPO Subscription Details

CategoryShares offeredSubscription (no. of times, at 5 PM)
Day 1Day 2Day 3
QIB5,082,8820.271.94150.95
NII3,750,0420.092.06236.04
Retail8,750,0960.862.777.02
Employees444,4440.070.250.80
Total18,027,4640.522.3295.09

Godrej Agrovet IPO Allotment Status

Godrej Agrovet IPO allotment status is now available on Karvy Computershare’s website. Click on this link to get allotment status. You can also check allotment status using application number on this link.

LISTING PERFORMANCE OF Godrej Agrovet

IPO Opening Date: 4 October 2017

IPO Closing Date: 6 October 2017

Finalisation of Basis of Allotment: 12 October 2017

Initiation of refunds: 13 October 2017

Transfer of shares to demat accounts: 13 October 2017

Listing Date: 16 October 2017

Listing Price on NSE: INR615.6 per share (up 33.82% from IPO price)

Closing Price on NSE: INR595.65 per share (up 29.48% from IPO price)

44 COMMENTS

  1. I got 1 lot but i am hold longterm perspective. I love this company & also company’s strong balansheet. So 1 to 2 year i am hold it.

  2. I Applied for 2 lots on the second day… nothing allotted. what is the criteria applied for allotment of shares. My bid was for Rs 460 per share…. if it is first come basis.. when i applied the retail subscription was less than 1.4 times. I Should be getting atleast on a proportion basis….

  3. applied for 13 lots but have not been allotted any shares in Godrej Agrovet. Can any one please explain. It was oversubscribed in RII category 7.67 times

  4. I applied for 11 lots but have not been allotted any shares in Godrej Agrovet. Can any one please explain. It was oversubscribed in RII category 7.67 times.

  5. Have worked there. Really good management, strong product pipeline and sales outreach. Literally functions like an FMCG as far as distribution is concerned. It has lot of subsidiary companies which can be spun off and they have also concentrated on inorganic growth through acquisitions of Creamline Dairy and Astec Lifesciences.

    As far as IPO is concerned, it is well priced, suggest not to look at ratios alone. The premium on book value is less than what I expected personally

    • Thanks for the firsthand information. I usually track grey market and premiums have gone up after subscription. Applied in three accounts!

  6. Here is the list of anchor investors. All very good names
    http://www.bseindia.com/markets/MarketInfo/DownloadAttach.aspx?id=20171003-40&attachedId=66f1e7d1-cf5a-4f28-99c0-9b8d313b173b

    Government of Singapore
    First State Indian Subcontinent Fund
    JP Morgan
    Russell Investment Company
    The India Fund Inc – Aberdeen
    Goldman Sachs India
    SBI MF
    Reliance AMC
    ICICI Prudential AMC
    SBI Life Insurance
    HSBC MF
    Motilal Oswal AMC
    Kotak Mutual Fund
    Axis Mutual Funs
    Asburton Investments
    Sundaram MF
    Amundi Funds
    DB International (Asia)

  7. 2017: 30% YoY increase in Net Revenue and fall in percentage expenses, still lower profit % than previous year. Scaling effect might not adequately justify this fall. But at 46x offer price, seeing the potential and researching their website and news websites, it’s still a must buy I think.

  8. Godrej Agrovet Limited IPO
    Issue Open Date : 04 Oct
    Issue Close Date : 06 Oct
    Issue Price : 450 to 460 Per Share
    Allotments / Refunds Date : 12 Oct
    Shares Demat Credit Date : 13 Oct
    Listing Date : 16 Oct

    Basic EPS & RoNW on consolidated basis
    2015 – Rs.8.98 27.12%
    2016 – Rs.9.78 23.94%
    2017 – Rs.11.42 22.68%
    NAV 54.49

    • There is nothing like must buy nowadays. Everything is costly so we should be very careful. Fundamentals are good but wait for the pricing.

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