Temasek-backed Godrej Agrovet files for India IPO

The company will offer an undisclosed amount of fresh shares for up to INR3 billion ($46.6 million), and up to 12.3 million shares held by Temasek, according to the prospectus. Pricing for the shares has not been announced. Currently Temasek holds 37 million shares, about a 20% stake in the company.

Proceeds from the issue will be used primarily for paying down Godrej Agrovet’s debt, with INR1.5 billion designated for this purpose. A further INR1 billion will go toward repayment or prepayment of working capital facilities, with the rest planned for general corporate purposes.

Godrej Agrovet was founded in 1991 and operates across a number of verticals, including animal feed, crop protection, palm oil, dairy and processed food. The company was India’s leading compound animal feed producer, with an aggregate production capacity of 2.36 million metric tons, and its largest crude palm oil producer for the 2016 financial year. Its crop protection products include plant growth regulators, herbicides and organic fertilizers, which are sold across India and exported to more than 20 countries.

The dairy business, operated through the Creamline Dairy subsidiary, sells milk and milk-based products under the Jersey brand across several states. Its processed foods vertical includes the Real Good Chicken brand, launched in 1994 and managed since 2008 as a joint venture with US-based Tyson Foods, and Yummiez, which includes both chicken-based and vegetarian snacks.

Temasek invested in Godrej Agrovet in 2012, paying INR5.7 billion for its 20% stake. The firm invested through its subsidiary V-Sciences Investments, which has also backed Indian life sciences companies such as drug maker Medreich and cancer care services provider HealthCare Global Enterprises.

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• Topics
• South Asia
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• Temasek Holdings
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• manufacturing
• Exit