Mon Oct 28 20:39:47 UTC 2024: ## Godavari Biorefineries IPO Receives Tepid Response, Grey Market Shows Optimism
**Mumbai, October 25, 2024:** The initial public offering (IPO) of Godavari Biorefineries Limited, an ethanol-based chemical maker, opened for bidding on October 23rd and is scheduled to close on October 25th. The company aims to raise ₹554.75 crore, with ₹325 crore coming from the issuance of fresh shares. The IPO is priced between ₹334 to ₹352 per equity share.
Despite the company’s promising future in the growing ethanol market, the IPO received a tepid response from investors in the first two days. However, the grey market, which reflects unofficial trading of shares before listing, shows optimism. Godavari Biorefineries shares are currently trading at a premium of ₹15 in the grey market, indicating potential listing gains.
By the third day of bidding, the issue had been subscribed 1.80 times, with the retail portion subscribed 1.65 times and the Qualified Institutional Buyers (QIBs) segment subscribing 2.76 times.
Analysts remain positive about the company’s future. Prathamesh Masdekar of StoxBox recommends subscribing to the IPO, citing Godavari’s strong market position, diverse product portfolio, and growth potential in the rapidly expanding ethanol market. Mahesh M Ojha of Hensex Securities also suggests applying, highlighting the company’s diversified customer base, research and development capabilities, and debt reduction plans.
The IPO allotment is expected on October 26th, with listing likely on October 30th. Investors are advised to consult with financial advisors before making any investment decisions.
First Piper 