The initial public offering (IPO) of Godavari Biorefineries is set to open for bidding on Wednesday, October 23. The company will offer its shares in a fixed price range of ₹334-352 per share. Investors can apply in lots of 42 equity shares, with the bidding closing on Friday, October 25.
The IPO will feature a fresh share issuance worth ₹325 crore and an offer-for-sale (OFS) of up to 6,526,983 equity shares by promoters and existing shareholders. At the upper end of the price range, the company aims to raise ₹554.75 crore through the IPO.
Proceeds from the fresh issue will be allocated for the repayment and/or pre-payment of certain outstanding loans, as well as for general corporate purposes. Funds from the OFS will go to the selling shareholders. The anchor book for the IPO will open on Tuesday, October 22.
As of June 30, 2024, the company operates an integrated biorefinery with a capacity of 570 KLPD for ethanol production and is the largest producer of MPO in the world by installed capacity as of March 31, 2024. It is also one of only two manufacturers of natural 1,3-butanediol and the sole producer of bio ethyl acetate in India.
Founded in 1956, Godavari Biorefineries produces ethanol-based chemicals in India. Its product range includes bio-based chemicals, sugar, various grades of ethanol, and power. These products serve multiple industries, including food, beverages, pharmaceuticals, flavors and fragrances, energy, fuel, personal care, and cosmetics.
Godavari Biorefineries serves a diverse client base that includes major companies like Hershey India, Hindustan Coca-Cola Beverages, Karnataka Chemical Industries, Techno Waxchem, LANXESS India, IFF Inc., Ankit Raj Organo Chemicals, Escorts Chemical Industries, Khushbu Dye Chem, Privi Speciality Chemicals, Shivam Industries, and leading oil marketing firms.
For the quarter ending June 30, 2024, Godavari Biorefineries reported a net loss of ₹26.11 crore on revenues of ₹525.27 crore. For the financial year ending March 31, 2024, it posted a net profit of ₹12.30 crore with revenues of ₹1,701.06 crore.
The company has reserved 50% of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will receive 15% of the allocation. The remaining 35% will be allocated to retail investors.
Equirus Capital and SBI Capital Markets are the book-running lead managers for the Godavari Biorefineries IPO, with Link Intime India serving as the registrar. The company’s shares will be listed on both BSE and NSE, with a tentative listing date of October 30, Wednesday.
