Mumbai: The initial public offering (IPO) of Godrej Agrovet Ltd, the agri-business unit of Godrej Industries Ltd, was subscribed 2.37 times on Thursday, the second day of the share sale, data from stock exchanges shows.

On the first day of the offering on Wednesday, the issue had witnessed a 53% subscription.

As of 5pm on Thursday, the portion of shares reserved for institutional investors saw a subscription of 2 times, while the portions reserved for retail investors and non-institutional investors were subscribed 2.8 times and 2.09 times, respectively.

Godrej Agrovet has priced its shares in a band of Rs450-460 per share. The IPO will close on 6 October.

The Rs1,157 crore IPO comprises a fresh issue of shares worth Rs291.5 crore. Proceeds from the fresh issue will be used by the firm for repayment or prepayment of working capital facilities, repayment of commercial papers issued by the company, and to meet general corporate expenses.

The promoters and investors will collectively sell around 18.82 million shares in the share sale.

Promoter Godrej Industries plans to offload shares worth Rs300 crore. Temasek Holdings Pte, which currently holds 20% in the agri-business company, plans to sell 12.3 million shares, which at the upper end of the price band will fetch the Singapore state-owned investor about Rs565.8 crore.

Temasek invested Rs572 crore in 2012. Post share sale, Temasek will hold 13% in Godrej Agrovet.

Established in 1991, Godrej Agrovet is a research and development-focused agri-business company with operations across five business verticals—animal feed, crop protection, oil palm, dairy and poultry and processed foods.

Ahead of its IPO, in September, the company raised close to $1.5 million (Rs8.5 crore) from about 50 Godrej group employees in a so-called pre-initial public offering round, Mint reported.

The pre-IPO round saw participation from employees at various group companies, including Godrej Consumer Products Ltd, Godrej Properties Ltd, Nature’s Basket, Godrej Tyson Foods and Godrej and Boyce Manufacturing Co. Ltd.

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