Godavari Biorefineries IPO Opens on October 23: Plans to Raise ₹554.75 Crores

The issue will close on October 25 with a price band of ₹334-₹352 per share

BILKULONLINE

Ahmedabad, Oct 22: Godavari Biorefineries is an integrated biorefinery company that focuses on the sustainable processing of renewable agricultural resources.

The company primarily produces ethanol, bio-based chemicals, sugar, and other value-added products. Its operations are centered on converting sugarcane and other agricultural feedstock into bio-based fuels, chemicals, and energy, following a circular economy approach.

The company’s product portfolio includes ethanol (used as biofuel and in industrial applications), various specialty chemicals derived from renewable sources, and sugar for food consumption. Additionally, Godavari Biorefineries produces power through co-generation, using biomass and other renewable resources as a part of its commitment to sustainability.

Samir Shantilal Somaiya, the Chairman and MD of the company along with Naresh Khaitan CFO, Sangeeta Srivastava, Executive Director, Ankesh Jain- Associate Director Equirus Capital were present in Ahmedabad to interact with the media.

Godavari Biorefineries, a leading integrated biorefinery company, is set to launch its initial public offering (IPO) on October 23, 2024. The IPO, which will close on October 25, aims to raise approximately ₹554.75 crores through a mix of fresh issue and an offer for sale. The fresh issue accounts for ₹325.00 crores, while the offer for sale involves up to 6,526,983 equity shares, each with a face value of ₹10.

Providing details of the IPO and sharing the information about the company CM & MD Samir Somaiya said “The price band for the IPO has been set between ₹334 and ₹352 per share. Of the total issue, 50% is reserved for Qualified Institutional Buyers (QIBs), 35% for retail investors, and 15% for High Net-worth Individuals (HNIs). The shares are slated for listing on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on October 30, 2024, with the allotment date set for October 28.

Financial Performance and Objectives of the IPO

• Company sees dip in revenue and profit ahead of IPO launch

Godavari Biorefineries reported a revenue of ₹1,701.06 crores for the fiscal year 2024, down from ₹2,023.08 crores in the previous year. The net profit for the same period also saw a decline, falling to ₹12.30 crores in 2024 from ₹19.64 crores in 2023″.

Despite the dip in financial performance, market analysts suggest that investors may consider the IPO for long-term potential, given the company’s integrated business model and expansion plans.he primary objectives of the issue include the repayment or pre-payment of certain outstanding borrowings and general corporate purposes.

Equirus Capital Private Limited and SBI Capital Markets Limited are the lead managers for the IPO. The promoters of the company are Samir Shantilal Somaiya, Lakshmiwadi Mines and Minerals Private Limited, and Somaiya Agencies Private Limited.

Disclaimer: This IPO news report is for informational purposes only and does not constitute financial or investment advice.