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Kaveri Seed Company was subscribed 0.38 times on second day. The issue received total bids for 15.30 lakh shares as against total total issue size of 40 lakh shares.
The qualified institutional buyers (QIBs) category was subscribed 0.47 times. The total bids in this category were for 9.11 lakh share as against 19 lakh shares allotted for this category.
The non institutional investors category was fully subscribed. The total bids in this category were for 5.70 lakh shares as against equal numbers of shares offered for this category.
The retail investors category was subscribed 0.03 times. The total bids in this category were for 49,280 shares as against 13.30 lakh shares assigned for this category.
Price band of the 100% book build issue is Rs 150-170 per share. The issue will close on 11 September 2007.
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; 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; biotechnology lab near Hyderabad; upgradation of existing seed processing plants at Kandalkoi, Gundla, Pochampally, Gatla, Narsingapur and Bellary; and processing plant near Hyderabad.
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