Godavari Biorefineries Ltd on Saturday, June 15, filed preliminary draft papers with capitals markets regulator Securities and Exchange Board of India (SEBI) to raise funds through an upcoming initial public offering (IPO).
The ethanol and bio-based chemicals maker's proposed initial share-sale is a combination of fresh issue of equity shares worth ₹325 crore and an offer-for-sale (OFS) of 65.27 lakh equity shares at the face value of ₹10 each, by promoters and an investor, according to the draft red herring prospectus (DRHP).
Private equity firm Mandala Capital AG Ltd is offloading 49.27 lakh shares through the OFS route. The proceeds from the fresh issue to the tune of ₹240 crore will be used for debt payment and the remaining amount for general corporate purposes. SBI Capital Markets and Equirus Capital Markets are the book running lead managers of the public issue.
The Maharashtra-based company is one of the largest manufacturers of ethanol-based chemicals in India with an installed capacity of 570 KLPD as at March 31, 2024. The customer profile includes marquee players such as Hershey India Pvt Ltd, Hindustan Coca-Cola Beverages Private Limited, M/s Karnataka Chemical Industries, M/s Techno Waxchem Pvt Ltd, among several others.
Godavari Biorefineries diversified product portfolio comprises bio-based chemicals, sugar, different grades of ethanol and power. These products find application in a range of industries such as food, beverages, pharmaceuticals, flavours and fragrances, power, fuel, personal care and cosmetics.
As on March 31, 2024, the company had the largest integrated bio-refinery in India in terms of installed capacity and were also the largest manufacturer of MPO worldwide in terms of installed capacity, one of only two manufacturers of natural 1,3 butylene glycol and the only company in India to manufacture bio ethyl acetate, according to a Frost & Sullivan Report. The company set up India’s first bio-based EVE manufacturing facility in India as on March 31, 2024.
According to the report, the bio-based chemicals market has been growing exponentially owing to the increasing need for environmentally sustainable solutions. The market for bio-based chemicals in 2023 was valued at $97.2 billion, and is expected to be growing at a CAGR (compound annual growth rate) of 10.4 per cent, for the next five years from 2023 to 2028.
