Mon Oct 28 05:58:26 UTC 2024: ## Godavari Biorefineries IPO Opens Next Week: Price Band Set at ₹334-₹352

**Mumbai, October 18, 2024:** Godavari Biorefineries, a leading chemical company, is set to launch its initial public offering (IPO) next week. The IPO, worth ₹555 crore, will open for subscription on October 23rd and close on October 25th. Investors can participate in the IPO by bidding for shares at a price range of ₹334-₹352 per share. The anchor investor portion of the IPO will open on October 22nd.

The IPO will be split between Qualified Institutional Buyers (QIBs) (50%), Non-Institutional Investors (15%), and Retail Investors (35%). The allotment of shares will be finalized on October 28th, and the shares will be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on October 30th. Link Intime is the registrar for the IPO.

The IPO includes a fresh issue of shares worth ₹325 crore and an Offer for Sale (OFS) of 65,26,983 shares with a face value of ₹10. The OFS will be undertaken by private equity firm Mandala Capital AG, which will be selling its entire stake of 49,26,983 shares purchased at an average price of ₹188.91.

The proceeds from the fresh issue will be used to repay debt (₹240 crore) and for general corporate purposes. As of June 2024, the company had a debt of ₹748.9 crore.

**About Godavari Biorefineries:**

Founded in 1956, Godavari Biorefineries manufactures chemicals, including ethanol. As of June 2024, the company has a production capacity of 570 kiloliters of ethanol per day. Godavari Biorefineries is one of only two companies in the world that produces natural 1,3-butadieniol, and the only company in India producing bio-ethyl acetate. Its product portfolio includes bio-based chemicals, sugar, various types of ethanol, and power. These products find use in a diverse range of industries, including food, beverages, pharmaceuticals, flavors and fragrances, power, fuels, personal care, and cosmetics. The company has two manufacturing facilities and three R&D facilities. As of October 2024, Godavari Biorefineries holds 18 patents and 53 registrations in various countries. It has customers in over 20 countries.

**Financials:**

Godavari Biorefineries recorded a net profit of ₹19.10 crore in FY2022, which rose to ₹19.64 crore in FY2023. However, the profit fell to ₹12.30 crore in FY2024. The company’s revenue also fluctuated during this period. Revenue reached ₹1,709.98 crore in FY2022, increased to ₹2,023.08 crore in FY2023, and then declined to ₹1,701.06 crore in FY2024. In the first quarter of FY2024-25 (April-June 2024), the company reported a net loss of ₹26.11 crore and revenue of ₹525.27 crore.

While the IPO’s potential for return is uncertain, market experts advise investors to make their investment decisions based on the company’s fundamentals and financial performance rather than solely relying on grey market signals.

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