Madhuri Madhusudan Kela Buys Stake In Godavari Biorefineries Worth Nearly Rs 17 Crore

Ace investor Madhusudan Kela's wife, Madhuri Madhusudan Kela, bought a 0.97% stake in Godavari Biorefineries Ltd. worth Rs 17 crore through an open market transaction on Wednesday. Kela bought 5 lakh shares at Rs 335.66 apiece in the debutant Godavari Biorefineries.

The company's promoters, Capri Global Capital Ltd., offloaded a 0.73% stake worth Rs 12.27 crore, according to bulk deal data on the NSE. Capri Global Capital sold 3.74 lakh shares at Rs 327.98 apiece.

Godavari Biorefineries's shares closed 2.5% lower at Rs 343.20 after it got 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 company's 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.

Earlier on Oct. 20, Godavari Biorefineries' Chairman and Managing Director Samir Somaiya said that the company aims to utilise the funds raised through the public offer to clear existing debts and to expand operations.

“The aim is to retire the debt of the company and the free cash flow thus generated will be used to invest into bio-based speciality chemicals later on,” he told NDTV Profit.

The Mumbai-based company manufactures ethanol-based chemicals and is an integrated bio-refinery with an installed capacity of 570 kilolitres 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.