Kaveri Seed Company ended with 4.51 times subscription. The IPO received total bids for 1.80 crore shares as against total issue size of 40 lakh shares. The qualified institutional buyers category was subscribed 5.58 times. The total bids in this category were for 1.06 crore shares as against 19 lakh shares offered to this category.
The non institutional investors category was subscribed 5.04 times. The total bids in the category were for 28.76 lakh shares as against 5.70 lakh shares assigned for this category.
The retail investors category was subscribed 3.26 times. The total bids in the category were for 43.38 lakh shares compared to 13.30 lakh shares allotted for this category.
Price band of the 100% book build issue was Rs 150-170 per share.
The PE multiple works out to 19.5 at the lower end of the price band and 22.1 at the higher end of the price band, based on the FY 2007 EPS of Rs 7.70 on post-issue equity of Rs. 13.70 crore.
Kaveri Seed is in the business of research, production, processing and marketing of high quality hybrid seeds for crops like corn, sunflower, cotton, pearlmillet, paddy, grain and sorghum.
The company plans to use the IPO proceeds to acquire farmland for research & development near Hyderabad, Alwar and Ahmedabad; set up marketing offices and godowns in Delhi, Lucknow, Jaipur, Ahmedabad, and Aurangabad.
Kaveri Seed Company would also deploy the IPO proceeds to acquire corn cobdrying plants in Andhra Pradesh and Karnataka; biotechnology lab near Hyderabad; upgradation of existing seed processing plants at Kandalkoi, Gundla, Pochampally, Gatla, Narsingapur and Bellary; and processing plant near Hyderabad.
Kaveri Seed reported net profit of Rs 10.54 crore on sales of Rs 65.77 crore in the year ended 31 March 2007. |