INDIAN NEWS & TIMES

Monday, December 11, 2017

godrej_agrovetGodrej Agrovet Limited (“Company”), a diversified, research and development focused agri-business company will be launching its initial public offering (“IPO” or the “Issue”) which is scheduled to open on October 04, 2017 and close on October 06, 2017, with a price band of Rs. 450/- to Rs. 460/-per Equity Share of face value of Rs. 10/- each of the Company (the “Equity Shares”).

The Anchor Investor Bid/Issue Period shall be October 03, 2017, being one working day prior to the Issue opening date.

The IPO comprises of a fresh issue of aggregating up to Rs. 2,915.12 million by our company (“Fresh Issue”) and an offer for sale by Godrej Industries Limited (“Promoter Selling Shareholder”) aggregating up to Rs 3,000 million and up to 12,300,000 equity shares by V-Sciences Investments Pte. Ltd (“V-Sciences” or “Investor Selling Shareholder”).

The issue would include a reservation of Rs. 200 million for subscription by eligible employees (as defined in “Definitions and Abbreviations”). Further, the company proposes to issue up to 405,500 equity shares to identified employees of the company under the ESPS (as defined in “Definitions and Abbreviations”) as part of the issue and at Issue Price.Picture_1 (10)The Company proposes to utilize the net proceeds of the Fresh Issue for (i) repayment or prepayment of working capital facilities availed by the Company;(ii) repayment of commercial papers issued by the Company; and(iii) general corporate purposes, subject to the applicable laws.

In terms of Rule 19(2)(b)(iii) of the Securities Contracts (Regulation) Rules, 1957, as amended (“SCRR”), the net Issue(Issue less the Employee Reservation Portion) shall be for at least 10% of the post-Issue paid-up equity share capital of the Company. The Issue is being made through the Book Building Process, in compliance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (the “SEBI ICDR Regulations”), wherein not more than 50% of the Net Issue shall be allocated on a proportionate basis to QIBs (“QIB Portion”), provided that the Company, in consultation with the BRLMs, may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis (“Anchor Investor Portion’’Godrej_Agrovet_Hori), at the Anchor Investor Allocation Price.

At least one-third of the Anchor Investor Portion shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above Anchor Investor Allocation Price. In the event of under-subscription, or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the QIB Portion.

Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Issue Price. Not less than 15% of the Net Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Net Issue shall be available for allocation to Retail Individual Bidders in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Issue Price.

All potential Bidders, other than Anchor Investors, shall only participate in the Issue through the Application Supported by Blocked Amount (“ASBA”) process providing details of their respective bank account which will be blocked by the Self Certified Syndicate Banks (“SCSBs”). Anchor Investors are not permitted to participate in the Issue through ASBA Process.

Kotak Mahindra Capital Company Limited, Axis Capital Limited and Credit Suisse Securities (India) Private Limited are the Book Running Lead Managers (“BRLMs”) to the Issue. The Registrar to the Issue is Karvy Computershare Private Limited.

The Equity Shares of Godrej Agrovet Limited is proposed to be listed on the National Stock Exchange of India and BSE Limited.