Godavari Biorefineries IPO Price Band Set At Rs 334-352, Issue Opens Oct. 23

Godavari Biorefineries Ltd. will offer its shares for bidding through an initial public offering at a price band of Rs 334-352 per share, the company announced on Friday.

The IPO consists of a fresh issue of shares worth Rs 325 crore and an offer for sale of more than 65 lakh shares, amounting to Rs 230 crore, by its existing shareholders and promoters.

Private equity firm Mandala Capital AG will be exiting the company by selling the entire stake of 49 lakh shares in the OFS. The selling promoters include Somaiya Agencies Pvt., Samir Shatilal Somaiya, Lakshmiwadi Mines and Minerals Pvt., Filmedia Communications Systems Pvt. and Somaiya Properties and Investments Pvt.

Godavari Biorefineries' IPO will open on Oct. 23 and close on Oct. 25. The company will seek funds from institutional investors via the anchor round on Oct. 22. The shares will list on exchanges on Oct. 30.

Proceeds from the fresh issue will be used for repaying debt amounting to Rs 240 crore, and the remaining funds will be utilised for general corporate purposes. It had consolidated debt of Rs 748.9 crore as of June 2024.

The lead book running managers of the IPO are SBI Capital Markets Ltd. and Equirus Capital Pvt.

Godavari Biorefineries is a manufacturer of ethanol-based chemicals. Its product portfolio comprises of bio-based chemicals, sugar, different grades of ethanol and power. It operates a bio-refinery in Maharashtra and Karnataka with an installed capacity of 570 kilo liter per day for manufacturing ethanol.

The company supplies products to several marquee players such as Hershey India, Techno Waxchem, Hindustan Coca-Cola Beverages, Karnataka Chemical Industries, LANXESS India, IFF Inc, Escorts Chemical Industries, Shivam Industries, as well as major oil marketing companies.

Godavari Biorefineries reported a profit of Rs 12.3 crore in financial year 2024, a decline from Rs 19.6 crore in the previous year. Revenue also fell to Rs 1,686.7 crore, down from Rs 2,014.7 crore in the same period. For the quarter ending June 30, 2024, the company recorded a loss of Rs 26.1 crore on revenue of Rs 522.5 crore.