The scrip debuted at Rs 201.15, a premium of 18.32% over the IPO price. It had touched a high of Rs 262 and a low of Rs 201.15. On BSE, 72.27 lakh shares of the scrip were traded.

At the current price of Rs 230.10, the PE multiple works out to 29.88 based on the FY 2007 EPS of Rs 7.70 on post-issue equity of Rs 13.70 crore.

The company had fixed the IPO price at the top end of the Rs 150- Rs 170 price band.

The Kaveri Seed IPO had ended on 12 September 2007 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 buyer category was subscribed 5.58 times. The non-institutional investor category was subscribed 5.04 times. The retail investor category was subscribed 3.26 times.

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; and 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; set up a biotechnology lab near Hyderabad; upgrade existing seed processing plants at Kandalkoi, Gundla, Pochampally, Gatla, Narsingapur and Bellary; and put up 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. |