Godavari Biorefineries IPO: Latest GMP Indicates Flat Listing Ahead Of Opening On Oct. 23

Godavari Biorefineries IPO, which is set to launch on Wednesday, has struggled to garner much traction in the unlisted market. The grey market premium on Godavari Biorefineries IPO stood at Rs 0 as of 10 a.m. on Oct. 22, indicating a flat listing over the upper end of the price band.

Note: GMP or grey market price is not an official price quote for the stock and is based on speculation.

The GMP of Godavari Biorefineries shares has remained at Rs 0 in the unlisted market since they began to trade on October 17.

The initial share sale will be open for bidding between October 23 and October 25. Share allotment of the issue is likely to be done on October 28.

The shares of Godavari Biorefineries Ltd. will be listed on BSE and NSE on October 30.

Godavari Biorefineries IPO price band has been set at Rs 334 to Rs 352 per share. The minimum lot size for retail investors to apply for the issue is 42 shares, taking the investment to Rs 14,784 per application.

The Rs 554.75-crore IPO is a combination of a fresh issue of 92 lakh shares worth Rs 325 crore and an offer for sale of 65 lakh shares worth Rs 229.75 crore.

Link Intime India Pvt. is the registrar for the IPO, while Equirus Capital Pvt. and SBI Capital Markets Ltd. are its book-running lead managers.

The management of Godavari Biorefineries told NDTV Profit that the company primarily plans to retire Rs 240 crore debt with the fresh proceeds from the IPO. The remaining amount will be used for general corporate purposes.

Established in 1956, Godavari Biorefineries Ltd. works in conversion of biomass into food, biofuels and chemicals. The company manufactures ethanol-based chemicals, with a product portfolio of bio-based chemicals, sugar, various grades of ethanol and power.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.