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.

Godrej Consumer Products rebounds 10% from day's low on heavy volumes

STOCK MARKET - Godrej Consumer Products (GCPL) gained 4% to Rs 963, bouncing back 10% from its intra-day low on BSE, on back of heavy volumes.

Till 1:26 pm; a combined 5.24 million shares representing 0.77% of total equity of GCPL changed hands on NSE and BSE. In past two weeks on an average 1.5 million shares were traded daily on both the exchanges.

The stock of personal products company dipped 5% to Rs 876, its lowest level since May 24, 2017, in early morning trade. It fell 19% in past five trading sessions from its record high level of Rs 1,084 touched on July 27.

GCPL had reported a lower than expected consolidated net profit and revenue in June quarter (Q1FY18), dragged down by subdued Indonesia performance and lower margins (weighed down by higher A&P spends across key geographies).

“India business performance was on expected lines and we expect growth to gather momentum as Goods & Service Tax (GST)-led disruption settles down in coming months. Africa operations were steady and should benefit from scale up of wet hair care products going forward. However, visibility on Indonesia operations (marred by step up in promotional competitive intensity in Household Insecticides) remains limited, posing downside risk to earnings,” analyst at JP Morgan said in result update.

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Godrej Consumer extends fall on disappointing Q1 results

STOCK MARKET - Godrej Consumer Products (GCPL) dipped 7% to Rs 958, extending its Monday’s 2% fall on BSE, after the company reported 9% decline in consolidated net profit to Rs 225 crore, as advertising and other expenditure grew sharply during the June quarter (Q1FY18).

Consolidated net sales grew 3% to Rs 2,177 crore, against Rs 2,117 crore a year ago. India business sales growth of 6% year-on-year, led by flat volume growth.

Analysts on average had expected profit of Rs 264 crore on net sales of Rs 2,279 crore.

“While sales in April and May were strong, June sales growth dipped due to channel de-stocking in the run up to the implementation of the transformative Goods & Services Tax (GST),” said Ms. Nisaba Godrej, Executive Chairperson, GCPL.

“At 3%, sales growth was in line with expectations; however, competitive pressure in Indonesia, higher spends on new launches and one-off costs led to a 200bps decline in operating margins,” according to analysts at SBI Cap Securities.

Thus far in the calendar year 2017, the stock had strong run-up, before it decline in past three trading sessions, rallied 42% against 22% rise in the S&P BSE Sensex till July 27, 2017.

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