Godrej Agrovet gets Sebi clearance for IPO

Godrej Industries arm Godrej Agrovet has received capital markets regulator Sebi's go-ahead to raise an estimated Rs 1,000-1,200 crore through an initial public offering.

The company had filed draft red herring prospectus (DRHP) with Sebi in July and received its 'observations' on September 8, which is very necessary for any company to launch public offer, as per the latest update with the markets regulator.

Godrej Agrovet's public issue comprises fresh issue of shares worth Rs 300 crore besides an offer for sale of scrips of up to Rs 300 crore by Godrej Industries and up to 1.23 crore shares by V-Sciences, as per the DRHP.

Besides, the company is considering a pre-IPO placement of up to 5.6 lakh equity shares worth up Rs 252 crore.

Godrej Industries owns 60.81 per cent in Agrovet, which is in businesses such as agri-inputs, animal feeds, palm oil manufacturing, dairy and poultry.

Proceeds of the IPO will be utilised towards repayment of loans and for other general corporate purposes.

According to merchant banking sources, the company is expected to garner an estimated Rs 1,000-1,200 crore through the initial public offer (IPO).

Kotak Mahindra Capital Company, Axis Capital and Credit Suisse Securities (India) Pvt Ltd will manage the company's public issue.

The equity shares of the company are proposed to be listed on BSE and NSE.

Earlier in June, Godrej Industries had announced that its board "has decided to participate in the IPO of equity shares by Godrej Agrovet Ltd".