IPO of Godrej Agrovet opens on October 4th, 2017

Godrej Agrovet (GAVL) is part of the prestigious "Godrej" group and is a well-diversified agri-business player that serves to enhance both crop and livestock yields. GAVL is coming up with an Initial Public Offering (IPO).

ISSUE DETAILS

Issue opens : October 4, 2017

Issue closes : October 6, 2017

Lot size : 32 shares and in multiples of 32 thereafter

Price Band : 450 - 460 per share About the Company : Godrej Agrovet has a diversified business model with animal feed constituting ~50% of sales, oil palm ~10%, Crop protection ~15% & Dairy ~20% GAVL has a strong brand recall with a nation wide presence The Company is one of the largest compound animal feed company in India with 35 manufacturing facilities and 4000 distributors Key financials : GAVL possess healthy balance sheet with Net Debt to Equity at 0.6x as of FY17 thereby providing comfort and strength to grow going forward The company also has a controlled working capital cycle with average NWC days ~30 days (FY13-17) The company has strong return ratios with ROE of 28% in FY17. Objects of the Issue : Repayment or prepayment of working capital facilities availed by the Company Repayment of commercial papers issued by the Company General corporate purposes Risks : Business verticals exposed to vagaries of nature Outbreak of livestock diseases Inability to innovate and introduce new products in the market place Interruption in third party services Detailed report from ICICI - Download Here