Godrej Industries arm Godrej Agrovet is likely to file Draft Red Herring Prospectus or DRHP for its initial public offer with the Securities and Exchange Board of India today, according to sources.
The company plans to raise Rs 400 crore via the initial public offer. Credit Suisse and Axis Capital are bankers to the issue.
Godrej Industries owns 60.8 percent in Agrovet, which is in businesses such as agri-inputs, animal feeds, palm oil manufacturing, dairy and poultry.
Last month, in a filing to the BSE, Godrej Industries had informed that its board "has decided to participate in the IPO of equity shares by Godrej Agrovet Ltd".
"Our company proposes to sell such number of equity shares in Godrej Agrovet Ltd up to Rs 400 crore through the offer," the company had stated in a filing to the exchange.
According to market sources, Temasek may also look to dilute a part of its holdings in the company.
The Singapore state-owned investment company had acquired a 19.99 percent stake in Godrej Agrovet for Rs 572 crore in 2012.
As per the annual report of Godrej Industries for 2015-16, Godrej Agrovet recorded a consolidated revenue of Rs 4,351 crore in the year compared with Rs 3,809 crore, a growth of 14 percent over 2014-15 sales.
During the year, Godrej Agrovet also acquired a controlling stake in Creamline Dairy Products, thus marking its entry in the dairy business.
Profit before tax during the year was, however, lower by 7 percent to Rs 255 crore against Rs 274 crore in 2014-15, largely due to subdued volumes in the animal feed vertical.
During 2015-16, the agri input business of the company grew 13 percent to Rs 419 crore against a sales of Rs 371 crore in the preceding year.
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