Advanced Enzyme Technologies Limited
(the “Company” or the “Issuer”) listed on the stock exchanges at Rs. 1,210 (35% premium over the Offer Price of Rs. 896 per share) with a weighted average price of Rs. 1,214.53. Present on the occasion were Mr. VL Rathi (Promoter Director, AETL), Mr. CL Rathi (MD, AETL), Mr. Piyush Rathi (CMO, AETL), Mr. Beni Rauka (CFO), Mr. Ajay Saraf (ICICI Securities), Mr. Chirag Negandhi (Axis Capital) and Mr. Ashishkumar Chauhan (MD and CEO, BSE Ltd.)
The Offer received 785,165 applications for 375,059,792 Equity Shares (prior to technical rejections) resulting in 81.626 times subscription as per the Basis of Allotment. The retail individual bidders portion was subscribed 11.36 times; the Non-Institutional Bidders portion was subscribed 391.88 times, the Qualified Institutional Bidders portion was subscribed 94.49 times; and the Eligible Employees portion was subscribed 1.65 times. The BRLMs to the Offer are ICICI Securities Limited and Axis Capital Limited.
The Company opened on July 20, 2016, an INITIAL PUBLIC OFFER OF 4,594,875 EQUITY SHARES OF FACE VALUE OF Rs. 10 EACH (“EQUITY SHARES”) OF ADVANCED ENZYME TECHNOLOGIES LIMITED (OUR “COMPANY” OR THE “ISSUER”) FOR CASH AT A PRICE OF Rs. 896 PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF Rs. 886 PER EQUITY SHARE) AGGREGATING TO Rs. 4,114.88 MILLION (THE “OFFER”) CONSISTING OF A FRESH ISSUE OF 560,405 EQUITY SHARES AGGREGATING TO Rs. 500 MILLION (THE “FRESH ISSUE”) AND AN OFFER FOR SALE OF, 4,00,000 EQUITY SHARES BY CHANDRAKANT RATHI INNOVATIONS AND PROJECTS PRIVATE LIMITED, 50,000 EQUITY SHARES BY KISHOR LAXMINARAYAN RATHI, 30,000 EQUITY SHARES BY MANGALA MADHUSUDAN KABRA, 17,00,000 EQUITY SHARES BY VASANT LAXMINARAYAN RATHI, 5,00,000 EQUITY SHARES BY THE VASANT AND PRABHA RATHI GENERATION TRUST, (COLLECTIVELY THE “PROMOTER GROUP SELLING SHAREHOLDERS”) AND 17,900 EQUITY SHARES BY KOTAK EMPLOYEES INVESTMENT TRUST, 1,62,700 EQUITY SHARES BY KOTAK INDIA VENTURE FUND I AND 3,36,600 EQUITY SHARES BY KOTAK INDIA VENTURE (OFFSHORE) FUND (COLLECTIVELY THE "INVESTOR SELLING SHAREHOLDERS") AND 447,270 EQUITY SHARES BY PERSONS LISTED IN ANNEXURE ‘A’ (COLLECTIVELY THE "OTHER SELLING SHAREHOLDERS-I") AND 40,000 EQUITY SHARES BY MUKUND MADHUSUDAN KABRA, 3,50,000 EQUITY SHARES BY PRADIP BHAILAL SHAH (COLLECTIVELY THE "OTHER SELLING SHAREHOLDERS-II") AGGREGATING TO Rs. 3,614.89 MILLION ("OFFER FOR SALE"), AND TOGETHER WITH THE FRESH ISSUE (THE “OFFER”). THE OFFER COMPRISES A NET OFFER TO THE PUBLIC OF 4,570,184 EQUITY SHARES (THE “NET OFFER”) AND RESERVATION OF 24,691 EQUITY SHARES AGGREGATING TO Rs. 20 MILLION FOR SUBSCRIPTION BY ELIGIBLE EMPLOYEES (AS DEFINED HEREIN) NOT EXCEEDING 5% OF OUR POST-OFFER PAID-UP EQUITY SHARE CAPITAL (THE “EMPLOYEE RESERVATION PORTION”). THE OFFER WOULD CONSTITUTE 20.58% OF OUR POSTOFFER PAID-UP EQUITY SHARE CAPITAL AND THE NET OFFER TO THE PUBLIC WOULD CONSTITUE 20.47% OF OUR POST-OFFER PAID-UP EQUITY SHARE CAPITAL. OUR COMPANY, IN CONSULTATION WITH THE SELLING SHAREHOLDERS AND THE BOOK RUNNING LEAD MANAGERS ("BRLMS"), OFFERED A DISCOUNT OF Rs. 86 PER EQUITY SHARE (EQUIVALENT TO 9.60%) ON THE OFFER PRICE TO ELIGIBLE EMPLOYEES (“EMPLOYEE DISCOUNT”). THE FACE VALUE OF THE EQUITY SHARES IS Rs. 10 EACH.
The Company had finalized the allocation of 13,71,053 Equity Shares in aggregate, to Anchor Investors at Anchor Investor allocation price of Rs. 896 per Equity Share (upper end of the Price Band), aggregating to Rs. 122.85 crore to anchor investors.
DB International (Asia) Ltd - 20.23%, Kuwait Investment Authority Fund - 6.51%, DSP Blackrock Equity Fund - 3.26%, DSP Blackrock Balanced Fund - 3.26%, HDFC Trustee Company Ltd- HDFC Equity Savings Fund - 0.57% , HDFC Small And Mid Cap Fund - 2.91%, HDFC Trustee Co. Ltd. A/C HDFC MF Monthly Income Plan Long Term Plan - 3.03%, ICICI Prudential Midcap Fund-6.51%, Reliance Capital Trustee Co Ltd A/C Reliance Small Cap Fund-6.51%, Birla Sun Life Trustee Company Private Limited A/C Birla Sun Life Emerging Leaders Fund - Series 3 -1.63%, Birla Sun Life Trustee Company Private Limited A/C Birla Sun Life Emerging Leaders Fund - Series 4 - 0.81% , Birla Sun Life Trustee Company Private Limited A/C Birla Sun Life Small And Midcap Fund - 4.07%, IDFC Imperial Equity Fund - 0.81% , IDFC Classic Equity Fund-2.03%., IDFC Equity Fund-2.03%, Shinhan BNPP Bonjour India Equity Investment Trust- Master Investment Trust - 4.88%, SBI Life Insurance Company Limited - 6.51%; L&T Mutual Fund Trustee Ltd A/C L&T Emerging Businesses Fund-2.44%, L&T Mutual Fund Trustee Ltd. A/C L&T Midcap Fund-2.44%, Birla Sunlife Insurance Co Ltd. - 4.88%, Tata AIA Life Insurance Co Ltd A/C Whole Life Midcap Equity Fund ULIF 009 04/01/07 Wle 110 - 4.88%; Reliance Nippon Life Insurance Company – 4.88%; and Kotak Mahindra Old Mutual Life Insurance – 4.88%.
The Offer comprises a Net Offer to the Public of Equity Shares (the “Net Offer”) and reservation of Equity Shares aggregating upto Rs. 20 million for subscription by Eligible Employees (as defined in the RHP) not exceeding 5% of the Post-Offer paid-up Equity Shares capital (the “Employee Reservation Portion”). A discount of Rs. 86 per Equity Share on the Offer Price is applicable to all Eligible Employees.
The Offer closed on July 22, 2016. Bids could be made for a minimum of 16 Equity Shares and in multiples of 16 Equity Shares thereafter.
The Equity Shares offered through the Offer are proposed to be listed on BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”).
The Offer is being made through the Book Building Process in compliance with Regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (the "SEBI Regulations"), wherein 50% of the Offer shall be allocated on a proportionate basis to qualified institutional buyers (“QIBs”) (the “QIB Portion”), provided that the Company, in consultation with the Selling Shareholders and BRLMs may allocate upto 60% of the QIB Portion to Anchor Investors (“Anchor Investor Portion”) on a discretionary basis, out of which atleast one-third shall be reserved for domestic Mutual Funds only, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Offer Price.
Further, 5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. Further, not less than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders, subject to valid Bids being received at or above the Offer Price. All potential Bidders, other than Anchor Investors, are mandatorily required to participate in this Offer through an Application Supported by Blocked Amount ("ASBA") process providing details of their respective bank accounts which will be blocked by the Self Certified Syndicate Banks ("SCSBs"). Anchor Investors are not permitted to participate in this Offer through the ASBA process.
The Company is the largest Indian enzyme company, engaged in the research and development, manufacturing and marketing of 400+ proprietary products developed from 60 indigenous enzymes. Having more than two decades of fermentation experience in the production of enzymes, it ranks among the top 15 global companies in terms of enzyme sales and has the second highest market share domestically, next only to the world’s largest enzyme company Novozymes. It operates in two primary business verticals namely Healthcare & Nutrition (human and animal) and Bio-Processing (food and non-food). It offers products to its global clientele of more than 700 customers spanning presence across 50 countries worldwide.