Godavari Biorefineries IPO opens on Oct 23; check price band, issue size and more

The initial public offering (IPO) of Godavari Biorefineries will open for bidding on Wednesday, October 23. The company will be selling its shares in the fixed price band of Rs 334-352 per share. Investors can apply for the issue in a lot size of 42 equity shares and the bidding shall close on Friday, October 25.

Incorporated in 1956, Godavari Biorefineries manufactures ethanol-based chemicals in India. The 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

The IPO of Godavari Biorefineries includes a fresh shares sale of shares worth Rs 325 crore and an offer-for-sale (OFS) of up to 65,26,983 equity shares by its promoters and existing shareholders. At the upper end of the price band, the company is looking to raise Rs 554.75 crore via IPO.

The net proceeds from the fresh issue shall be utilized towards repayment and/or pre-payment of certain outstanding borrowings availed by the company; and general corporate purposes. Proceeds from the OFS shall go to the selling shareholders. Anchor book for the issue shall open on Tuesday, October 22.

The company operates an integrated biorefinery with a capacity of 570 KLPD for ethanol production, as of June 30, 2024. It is the largest producer of MPO in the world based on installed capacity as of March 31, 2024. It is one of only two manufacturers of natural 1,3-butanediol and the only company in India that makes bio ethyl acetate.

Godavari Biorefineries' client base includes marquee players such as 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 major oil marketing companies.

The company serves customers in over 20 countries, including Australia, China, Germany, France, Italy, Japan, Kenya, the Netherlands, Singapore, the United Kingdom, the United Arab Emirates, Indonesia, and the United States. It operates two manufacturing facilities, one in Bagalkot, Karnataka, and the other in Ahmednagar, Maharashtra.

For the quarter ended on June 30, 2024, the company reported a net loss of Rs 26.11 crore with a revenue of Rs 525.27 crore. The company clocked a net profit of Rs 12.30 crore with a revenue of Rs 1,701.06 crore for the financial year ended on March 31, 2024.

Godavari Biorefineries has reserved 50 per cent of the net offer for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of the allocation. Remaining 35 per cent of the net offer shall go to the retail investors of the issue.

Equirus Capital and SBI Capital Markets are the book running lead managers of the Godavari Biorefineries IPO, while Link Intime India is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE with October 30, Wednesday as the tentative date of listing.