Godavari Biorefineries, a prominent player in the biorefining sector, has announced its plans to launch an IPO to raise ₹554.75 crore. The initiative aims to fuel its growth and repay existing debts while providing an opportunity for investors to participate in its future endeavors. In an ever-evolving market landscape, this IPO is poised to attract significant attention.
IPO Size and Structure
Godavari Biorefineries’ IPO aims to raise a total of ₹554.75 crore. This financial endeavor will include a fresh issuance of shares worth ₹325 crore along with an Offer for Sale (OFS) of 6,526,983 equity shares, valued at ₹229.75 crore.
Price Band and Lot Size
The price band for each share is set between ₹334 and ₹352. Interested investors must apply for a minimum of 42 shares, which translates to a total investment of ₹14,784 at the upper price limit.
Important Dates
The IPO will officially open for subscription on **October 23** and will remain active until **October 25**. Notably, the bidding for anchor investors is scheduled for **October 22**, with the allotment expected to be finalized by **October 28** and the company’s listing on the stock market is anticipated on **October 30**.
IPO Objectives
Godavari Biorefineries plans to utilize the IPO proceeds for several key objectives. The primary goals include the repayment or pre-payment of borrowings amounting to ₹240 crore, with the remaining funds earmarked for general corporate purposes.
Promoters and Management
The IPO is backed by a strong team of promoters including Samir Shantilal Somaiya, Lakshmiwadi Mines and Minerals Private Limited, Sakarwadi Trading Company Private Limited, and Somaiya Agencies Private Limited. Their experience in the industry is expected to guide the company towards sustainable growth.
Investor Distribution and Reservation
The shares available for subscription will be distributed as follows: 50% of the IPO is reserved for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors, ensuring a diversified participant base.
Grey Market Insights
As of now, there is no premium in the grey market for Godavari Biorefineries’ IPO, indicated by a nil Grey Market Premium (GMP). This may reflect cautious sentiment among potential investors ahead of the public offering.
Financial Performance Overview
Financially, Godavari Biorefineries has experienced a decline, reporting a profit of ₹12.30 crore for the fiscal year ending March 31, 2024, down from ₹19.64 crore the year prior. Furthermore, revenue fell from ₹2,023.08 crore to ₹1,701.06 crore, signaling potential challenges that the company must address moving forward.
IPO Management
The IPO will be managed by notable institutions including SBI Capital Markets and Equirus Capital Private Limited as the book-running lead managers, with Link Intime India serving as the registrar for the offering.
Conclusion
The upcoming IPO of Godavari Biorefineries presents an intriguing opportunity for various investors. As the company aims to bolster its financial standing through debt repayment and growth initiatives, it remains to be seen how the market will respond to this offering. Investors should weigh the financial prospects against recent performance dips carefully.
FAQ
Q1: What is the total amount Godavari Biorefineries aims to raise through its IPO?
A1: The company aims to raise a total of ₹554.75 crore.
Q2: When does the IPO open and close?
A2: The IPO will open on October 23 and close on October 25.
Q3: How many shares are included in the Offer for Sale (OFS)?
A3: The OFS consists of 6,526,983 equity shares valued at ₹229.75 crore.
Q4: Who are the book-running lead managers for the IPO?
A4: The IPO is being managed by SBI Capital Markets and Equirus Capital Private Limited.
