Shares of Godavari Biorefineries made a muted Dalal Street debut on Wednesday, as the stock was listed at Rs 308 on NSE, with a discount of 12.50 per cent over the issue price of Rs 352. Similarly, the ethanol player kicked-off its maiden trading session and began its BSE journey with a discount of 11.78 per cent over the given issue price at Rs 310.55.
The listing of Godavari Biorefineries has been below the expectations. Ahead of its debut shares of Godavari Biorefineries were commanding a Grey market premium (GMP) of Rs 5 in the unofficial market, suggesting a listing pop of merely one per cent for the investors.
Godavari Biorefineries IPO was open for bidding between October 23 and October 25. It had offered its shares in the fixed price band of Rs 334-352 per share with a lot size of 42 shares. It raised a total of Rs 554.75 crore from its IPO, which included a fresh share sale of Rs 325 crore and offer-for-sale (OFS) of up to 65,26,983 equity shares. The issue was overall subscribed merely 1.83 times, thanks to the last minute interest from qualified institutional bidders (QIBs), whose quota was booked a 2.76 times. The allocation for retail investors was booked 1.71 times. The portion for non-institutional investors(NIIs) was undersubscribed at 90 per cent only during the bidding process.
Incorporated in 1956, Godavari Biorefineries manufactures ethanol-based chemicals in India. The Mumbai-based company's product portfolio includes bio-based chemicals, sugar, various grades of ethanol, and power. These products are used in industries such as food, beverages, pharmaceuticals, flavours and fragrances, power, fuel, personal care, and cosmetics.
Brokerages had mixed views on the issue with some suggesting to subscribe to it, while other avoided it. Equirus Capital and SBI Capital Markets were the book running lead managers of the Godavari Biorefineries IPO, while Link Intime India served as the registrar for the issue.