The initial public offer (IPO) of Godavari Biorefineries is set to hit the primary market on Wednesday, October 23. The company is looking to raise ₹554.75 crore via the three-day share sale. Godavari Biorefineries IPO is a mix of fresh issue and an offer for sale (OFS).
The company is a major producer of ethanol-based chemicals in India, with a bio-refinery that has a capacity of 570 KLPD. According to its Red Herring Prospectus (RHP), it is one of the largest ethanol producers by volume as of March 31, 2024. The company offers a wide range of products, including bio-based chemicals, sugar, various grades of ethanol, and power. These products are used in industries like food and beverages, pharmaceuticals, flavours and fragrances, power, fuel, personal care, and cosmetics.
The company supplies products to well-known companies such as Hershey India, Hindustan Coca-Cola Beverages, Karnataka Chemical Industries, Techno Waxchem, and Escorts Chemical Industries, as well as major oil marketing companies.
Godavari Biorefineries IPO size: The company is looking to raise ₹554.75 crore by selling 15,759,938 shares. The IPO consists of a fresh share sale of ₹325 crore and an OFS of 6,526,983 equity shares by promoters and investor selling shareholders worth ₹229.75 crore
Godavari Biorefineries IPO price band: The price band for the issue has been fixed in the range of ₹334 to ₹352 apiece.
Godavari Biorefineries IPO important dates: The public offer will open for subscription on Wednesday, October 23 and close on Friday, October 25. The anchor investor bidding date is slotted for Tuesday, October 22. Apart from this, the basis of allotment will likely be finalised on Monday, October 28 with listing possible on Wednesday, October 30.
Godavari Biorefineries IPO offer objective: The funds raised via fresh share sale will be utilised by the company for repayment/pre-payment, in full or in part, of certain outstanding borrowings availed by the company to the tune of ₹240 crore. While remaining funds will be used for general corporate purposes.
Godavari Biorefineries promoters: The promoters of the company are Samir Shantilal Somaiya, Lakshmiwadi Mines and Minerals Private Limited, Sakarwadi Trading Company Private Limited, Somaiya Agencies Private Limited.
Godavari Biorefineries IPO reservation: Nearly 50% of the IPO is reserved for qualified institutional buyers, 35% for retail investors and the remaining 15% for non-institutional investors.
Godavari Biorefineries IPO lot size: The minimum lot size for the IPO is 42 shares and its multiples thereof. Retail investors will need to shell ₹14,784 to subscribe to one lot of the issue at the upper price band.
Godavari Biorefineries IPO GMP: As per market experts, the GMP for Godavari Biorefineries IPO is nil currently.
Godavari Biorefineries financial performance: Godavari Biorefineries' profit declined to ₹12.30 crore as of March 31, 2024, from ₹19.64 crore in the year-ago period. Meanwhile, its revenue dropped to ₹1,701.06 crore from ₹2,023.08 year-on-year.
Godavari Biorefineries IPO lead manager and registrar: SBI Capital Markets and Equirus Capital Private are the book-running lead managers to the issue while Link Intime India is the registrar to the offer.
