Godavari Biorefineries IPO: Chemicals producer garners ₹166 crore from anchor investors ahead of IPO

Godavari Biorefineries Ltd, a producer of ethanol and bio-based chemicals, on Tuesday raised over ₹166 crore from anchor investors, ahead of its initial public offering (IPO) set to open for public subscription.

Notable participants in the anchor round included HDFC Mutual Fund, Whiteoak Capital Fund, Goldman Sachs (Singapore) Pte Ltd, Societe General, and SBI General Insurance, according to a circular on the BSE website.

According to the exchange filing, the company allocated 47.28 lakh equity shares to 19 funds at ₹352 per share, the upper limit of the IPO price band, resulting in a transaction size of ₹166.42 crore.

Of the 47.28 lakh shares allocated to anchor investors, 23.74 lakh shares (50.22 percent of the total) were allotted to six domestic mutual funds across 10 schemes.

Godavari Biorefineries IPO details

Godavari Biorefineries IPO, which opens for subscription from October 23-25, will have a price range of ₹334 to ₹352 per share. The offering consists of a fresh issue of equity shares worth ₹325 crore and an Offer-for-Sale (OFS) of 65.27 lakh shares valued at ₹230 crore by promoters and an investor, making the total IPO size ₹555 crore. Private equity firm Mandala Capital AG Ltd will be selling 49.27 lakh shares through the OFS route.

Proceeds from the fresh issue will primarily be used to repay ₹240 crore in debt, with the remainder allocated for general corporate purposes.

At the upper price band, the company is valued at ₹1,800 crore. Half of the issue is reserved for qualified institutional buyers, 35 percent for retail investors, and 15 percent for non-institutional investors.

Godavari Biorefineries, based in Maharashtra, is a leading manufacturer of ethanol-based chemicals in India, with a diverse product portfolio including bio-based chemicals, sugar, ethanol, and power. These products are used across industries such as food, beverages, pharmaceuticals, flavors and fragrances, power, fuel, personal care, and cosmetics.

A Frost & Sullivan report highlights the exponential growth of the bio-based chemicals market, driven by the rising demand for environmentally sustainable solutions. The market, valued at USD 97.2 billion in 2023, is projected to grow at a compound annual growth rate (CAGR) of 10.4 percent from 2023 to 2028.

SBI Capital Markets and Equirus Capital Markets are serving as the lead managers for the IPO.