Agribusiness company Godrej Agrovet, a subsidiary of Godrej Industries, made a stellar market debut on stock exchanges today. Godrej Agrovet shares jumped as much as 37 per cent to Rs 630 on the National Stock Exchange (NSE) against the issue price of Rs 460. With a 37 per cent gain on the listing day, Godrej Agrovet joins the league of successful IPOs in 2017 which include Prataap Snacks, Capacit'e Infraprojects, Dixon Technologies, CDSL, Hudco, Avenue Supermarts and Shankara Building Product.
The initial public offer (IPO) of Godrej Agrovet, which ended on October 6, was subscribed over 95 times with strong demand coming from qualified institutional investors (QIB) and non-institutional investors. The non-institutional investors' segment was subscribed 236 times while the segment reserved for QIBs saw subscription of nearly 151 times.
Godrej Agrovet has raised Rs 292 crore of fresh equity capital through this issue, which it wants to use for repayment of working capital loans and commercial papers.
Incorporated in 1991, Godrej Agrovet is a diversified, R&D focused, agribusiness player with operations spread across five business verticals - animal feed, crop protection, oil palm, dairy and poultry and processed foods. It is also the largest crude palm producer in India and 4th largest animal feed producer in Bangladesh through its 50:50 joint venture ACI Godrej.
As of 11:15 am, Godrej Agrovet shares traded 26.70 per cent higher at Rs 582.80 compared to the issue price of Rs 460.