Godrej Agrovet Limited IPO – Company Profile, IPO Date, Price Band, Analysis

Godrej Agrovet Limited – a diversified, research and development focused agri-business Company in India – is planning to raise INR 865.8 crore (300 crores of Fresh Issue + 565.8 crores of OFS) via initial public offer (IPO).

Godrej Agrovet Limited – Company Profile & Mission

• Incorporated in the year 1991, Godrej Agrovet Limited is an agri-business Company offering products such as Animal Feed (a leading animal feed company in India), Crop Protection, Dairy and Poultry, Oil Palm (a largest crude palm oil producer in India), and Processed Foods.
• The Company is on a mission to improve the productivity of Indian farmers by innovating products and services that sustainably increase crop and livestock yields.

Working Area

Godrej Agrovet operates across 5 business verticals:

1. In animal feed business, the products comprise aqua feed (fish and shrimp), cattle feed, poultry feed (broiler and layer), and specialty feed. The products are produced at 35 facilities and sold through 4000 distributors across India.
2. In crop protection business, the company produces plant growth regulators, organic manures, generic agrochemicals and specialized herbicides. The products are sold in India and 24 countries. The company has over 6000 distributors in this business segment.
3. In oil palm business, the products include crude palm oil, crude palm kernel oil, and palm kernel cake. The company owns five palm oil mills.
4. The dairy business is operating through a subsidiary Creamline Dairy. The company sells milk and milk-based products under the ‘Jersey’ in 5 south India states. The company owns nine milk processing units. The company has 2,500 milk product distributors and 50 retail parlors.
5. The company also produces processed poultry and vegetarian products under the brands Real Good Chicken and Yummiez.

R & D Centers

The Company has 2 dedicated R&D (Research and Development) centers for crop protection business at Mumbai and Thane, which has enabled the company to launch new products. The oil palm business has a dedicated R&D center at Andhra Pradesh, which is focused on improving the yield performance of oil palm crop and exploring new avenues of value creation from oil palm biomass.

Plantations Facilities

The Company has plantations facilities across Andhra Pradesh, Chhattisgarh, Goa, Gujarat, Maharashtra, Orissa, and Tamil Nadu. In 2015, the company has commissioned an oil palm mill in Mizoram as well.

Promoters of the Company

• Godrej Industries Limited
• Nadir B. Godrej
• Adi B. Godrej

IPO Opening / Closing Dates & Listing

IPO Details – Issue Price, Minimum Bid and Other

Financial Performance

Revenues

The Company shows steady revenue growth in recent years. Top-line has been increasing regularly for the last 5 years and jumped from INR 2771.57 crore in FY 2013 to INR 4983.29 crore for the period ended FY 2017.

Profits

Though the company has shown superb growth in revenue, the company has also registered impressive profits in these 5 years. Starting from INR 96.58 crore of profits in FY2013, the company’s earnings improved to INR 273.53 crore for the period ended FY 2017.

CONCLUSION –

Considering company’s valuation and financial parameters, FinBlab recommends SUBSCRIBE ratings on Godrej Agrovet Limited IPO.

 

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