Kaveri Seed IPO oversubscribed four times
12 Sep 2007
The initial public offer (IPO) of the Kaveri Seed Company, one of the few recognised agri-input companies in India, was oversubscribed 4.51 times on the last day of its offer. The issue received bids for 1.80 crore shares, for the 40 lakh shares on offer, stock exchange data shows.
The company expects to raise up to Rs68 crore ($16.85 million) from the issue, for which the price band has been fixed at between Rs150 to Rs170 ($3.72 to $4.21) a share.
Kaveri Seed proposes to utilise the issue for acquisition of farmland for research and development near Hyderabad, Alwar and Ahmedabad, setting up marketing offices and godowns in Delhi, Lucknow, Jaipur, Ahmedabad and Aurangabad, and a biotechnology lab near Hyderabad.
It
also plans to upgrade its existing seed processing plants at Kandalkoi, Gundla
Pochampally, Gatla Narsingapur and Bellary, and set up a seed processing plant
near Hyderabad. Kaveri Seeds is mainly into research, production, processing and
marketing of high-quality hybrid seeds for crops like corn, sunflower, cotton,
pearl millet, paddy and grain sorghum. It has recently forayed into micronutrients
and bio-products.