Godavari Biorefineries Share Price Debuts At 12% Discount Over IPO Price

Godavari Biorefineries Ltd.'s shares listed at Rs 308 on the NSE on Wednesday, a discount of 12.5% over its issue price of Rs 352. It opened at Rs 310.55 on the BSE, a discount of 11.78%.

The IPO was subscribed 1.83 times on its third and final day. It consists of a fresh issue of 92 lakh shares worth Rs 325 crore and an offer for sale of 65 lakh shares worth Rs 229.8 crore.

The IPO witnessed solid demand across segments, with qualified institutional buyers (2.76 times), followed by retail investors (1.71 times) and non-institutional investors bidding 0.90 times the offer.

Ahead of the IPO, the company raised Rs 166.4 crore from anchor investors.

The Mumbai-based company manufactures ethanol-based chemicals and is an integrated bio-refinery with an installed capacity of 570 kilo-liter per day for manufacturing ethanol as of June. According to the red herring prospectus, the company is one of India’s largest producers of ethanol in terms of volume as of March.

Its portfolio comprises of bio-based chemicals, sugar, different grades of ethanol and power. Products of the company find application in a range of industries such as food, beverages, pharmaceuticals, flavours and fragrances, power, fuel, personal care and cosmetics.

The company will not be receiving proceeds from the offer for sale component.

Net proceeds from the fresh issue will go into repaying or pre-payment of outstanding borrowings amounting to Rs 240 crore and general corporate purposes.