Godrej Agrovet IPO Subscribed 0.53 Times On First Day Of Bidding

Day 1 Subscription (As of 5 pm)

• Qualified institutional buyers: 0.28 times
  
• Non-institutional bidder: 0.10 times
  
• Retail investor : 0.88 times
  
• Employee: 0.08 times
  
• Overall: 0.53 times

India's largest animal feed maker Godrej Agrovet Ltd.'s Rs 1,157-crore initial public offering, which opened today, was subscribed 0.53 times on the first day of the bidding.

The public issue of the agri-business company received bids for 93.76 lakh shares, as against the total issue size of 1.77 crore shares, as of 5:00 pm, according to data shared by Axis Capital, one of the lead bankers.

The shares set aside for retail investors saw the highest demand at 0.88 times the number of shares on offer. The segment for qualified institutional buyers was subscribed 0.28 times, while the quota reserved for non-institutional investors was bid for 0.10 times. Shares allotted to employees saw muted demand.

Ahead of the launch of its public offering, the company raised Rs 341.19 crore from 25 anchor investors at the upper end of the price band.

Backed by Singapore government's investment fund Temasek Holdings, Godrej Agrovet is looking to raise close to Rs 1,157 crore by offering 2.52 crore shares at Rs 450-460 apiece. Parent Godrej Industries Ltd. will sell stake worth Rs 300 crore and Temasek's arm, V-Sciences, will offload a third of its nearly 20 percent holding. The agri-products maker will also issue fresh shares to mop up Rs 291.5 crore to repay short-term loans.

Godrej Agrovet is a research and development-focused agri-business company. It's been shifting focus from animal feed to crop protection business that offers higher margins.

Also Read: Here's All You Need To Know About Godrej Agrovet IPO