Godavari Biorefineries IPO to open on Oct 23

On January 12, 1956, our company was incorporated in Mumbai, Maharashtra, as Godavari Investment and Finance Corporation Limited, a public limited company under the Indian Companies Act, 1913, following the issuance of a certificate of incorporation by the Registrar of Companies, Bombay. The company was renamed Godavari Biorefineries Limited, and on November 10, 2006, the Registrar of Companies, Maharashtra, in Mumbai, issued a new certificate of incorporation. The sugar, power, chemical, and distillery business (the “business”) of The Godavari Sugar Mills Limited was merged into our organization on April 21, 2009, with effect from April 1, 2008. The company offers power, sugar, different grades of ethanol, bio-based chemicals, and various other products. These goods find application in the food, beverage, pharmaceutical, flavour and fragrance, energy, fuel, personal care, and cosmetics industries.

The IPO of Godavari Biorefineries

On October 23, Godavari Biorefineries will begin accepting bids for its initial public offering (IPO). The fixed price range of Rs 334-352 per share is where the company will be selling its shares. Application for the issue is open to investors in lots of forty-two equity shares; the bidding will end on Friday, October 25.

In addition to the fresh share sale worth Rs 325 crore, the promoters and current shareholders of the company will offer up to 65,26,983 equity shares for sale (OFS) as part of the Godavari Biorefineries IPO. The company intends to use an initial public offering (IPO) to raise Rs 554.75 crore at the upper end of the price range. Godavari Biorefineries’ IPO is being bookrun by Equirus Capital and SBI Capital Markets, with Link Intime India serving as the registrar.

Godavari Biorefineries will use the IPO fund

The net proceeds from the new issue will be used for general corporate purposes as well as the repayment and/or prepayment of some outstanding loans that the company has taken out. The selling shareholders will receive the OFS proceeds. The issue’s anchor book will open on Tuesday, October 22.

By June 30, 2024, the company will have an integrated biorefinery producing 570 KLPD of ethanol. As of March 31, 2024, it has installed capacity making it the world’s largest producer of MPO. It is the sole producer of bioethyl acetate in India and one of just two producers of natural 1,3-butanediol.

Godavari Biorefineries Clients

Prominent companies like Hershey India, Hindustan Coca-Cola Beverages, Karnataka Chemical Industries, Techno Waxchem, LANXESS India, IFF Inc., Ankit Raj Organo Chemicals, Escorts Chemical Industries, Khushbu Dye Chem, Privi Speciality Chemicals, Shivam Industries, and significant oil marketing companies are among Godavari Biorefineries’ clientele.

Godavari Biorefineries Revenue

The company reported a net loss of Rs 26.11 crore and revenue of Rs 525.27 crore for the quarter that concluded on June 30, 2024. For the fiscal year that concluded on March 31, 2024, the company recorded revenue of Rs 1,701.06 crore and a net profit of Rs 12.30 crore.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.