Godrej Agrovet shares mark a strong debut on stock exchanges

Shares of Godrej Agrovet Limited marked a stellar debut on the exchanges on Monday after the company has concluded its Initial Public Offering last week. The stock advanced about 35% to Rs 621 from its issue price of Rs. 460 on BSE.

Shares of Godrej Agrovet Ltd rose 37% to hit the record high of Rs 629.85. The IPO of Godrej Agrovet subscribed 95.41 times on the final day bidding and mobilized over Rs 79000 crore for an issue size of Rs 1,158 crore.

Godrej Agrovet is the first IPO of Godrej group in eight years. The company has raised about Rs 341 crore from anchor investors ahead of its IPO. Over 74.17 lakh shares would be allotted to 25 anchor investors at Rs 460 /equity share, as per exchange filing.

Oil prices rise on Middle East Worries

Oil prices rose on Friday, as tumult in the Middle East underpinned the market. The WTI for November delivery on Friday reportedly increased USD 0.85 to settle at USD 51.45 a barrel on the New York Exchange, while Brent crude for December delivery rose USD 0.92 to close at USD 57.17 per barrel on the London ICE Futures Exchange.

US President Donald Trump said on Friday that he had decided to decertify Iran’s compliance with the landmark deal reached in 2015.

Analysts are of view that disorder in the Middle East and possible US action on the Iran nuclear deal heightened the oil prices, since traders are under geopolitical worries. On the data front, the number of rigs operating in U.S oil fields fell by 5 to a total of 743 rigs this week.

General Insurance Corp IPO fully subscribed on strong QIB demand

The Rs 11,370 crore mega initial public offer of General Insurance Corpn of India (GIC Re) got fully subscribed on Day third day of the bidding process on Friday under strong demand from qualified institutional buyers (QIB).

The issue received bids for 12,61,97,408 shares, which were 1.01 times the issue size of 12,47,00,000 shares on offer after lunch hours. The quota for QIB was subscribed 1.79 times, retail 32%, while non-institutional investor witnessed 5% subscription.

The company’s gross premium has grown at CAGR of 24.84% in FY15-17. On consolidated basis, the company’s gross premium has grown at a CAGR of 48.65% FY1517.

General Insurance Corpn of India’s IPO is India’s third biggest after Coal India Ltd’s Rs 15,200 crore and Reliance Power Ltd’s Rs 11,700 crore issues in 2008.