Godrej Agrovet lists at Rs 621, 35% premium against issue price

Godrej Agrovet made a strong debut by listing at Rs 621, a 35% premium against its issue price of Rs 460 per share on the BSE. On the National Stock Exchange (NSE), the stock opened at Rs 616, 34% higher against issue price.

At 10:04 AM; the stock was trading at Rs 608 after hitting a high of Rs 630 on the BSE and NSE. A combined 6.33 million shares changed hands on the counter on both the exchanges so far.

The Rs 1,170-crore initial public offer (IPO) of Godrej Agrovet saw 95 times more demand than shares on offer. The institutional portion of the issue was subscribed 151 times, while the non-institutional category comprising high net-worth individuals (HNIs) was subscribed 236 times. The retail investor portion was subscribed 7.67 times.

Godrej Agrovet is a leading player in the animal feed segment and it also has a presence across segments, including the crop protection, palm oil, dairy and poultry businesses. The price band for the offering was fixed at Rs 450-460 per share.

IPO proceeds are expected to be gainfully utilized in lowering working capital loans and repaying issued commercial papers, which would lead to higher profitability in the coming future, IIFL Investment Managers said in a note.