Kaveri Seed IPO receives 38% subscription on day two
Kaveri Seed IPO receives 38% subscription on day two
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Secunderabad-based Kaveri Seed (KSCL), maker of agriculture inputs, received 33% subscription for its initial public offer (IPO) on second day of issue. The IPO received 1,530,880 bids as against issue size of 4,000,000 shares. A total of 38,760 bids were received at cut off price.
KSCL intends to deploy the issue proceeds in expansion plans worth Rs 632.97 million. It includes setting up of marketing offices and godowns, corn cob drying plants, biotechnology lab, and seed processing plant. In addition, KSCL plans to acquire farmland for R&D facilities, upgradation of existing seed processing plants and meeting the working capital requirements. The benefits of these plans are expected to contribute to financials of KSCL from November 2008 onwards.
Incorporated in 1986, Kaveri Seed is engaged in the business of production, processing and marketing of high quality hybrid s eeds for different crops like corn, sunflower, cotton, paddy, grain sorghum, etc. Recently the company forayed into micronutrients and bio-products. In addition, the company produces non-hybrid seeds. The production, processing and R&D facilities are located in Andhra Pradesh and Karnataka.
