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The initial public offer (IPO) of Godavari Biorefineries will open for subscription on Wednesday. The issue will be available for bidding till October 25. The IPO includes a fresh issue worth Rs 325 crore and an offer-for-sale (OFS) of up to 6.
53 million shares by existing shareholders and promoters. Private equity firm Mandala Capital AG will exit the company, selling its entire stake of 49,26,983 shares in the OFS. Godavari Biorefineries price band The company has fixed a price band of Rs 334-342 per share, where investors can bid for 42 shares in one lot.
Godavari Biorefineries GMP In the unlisted market, the company's shares have no GMP ahead of the issue opening. Stock Trading A2Z of Stock Market for Beginners: Stock Market Course For Beginners By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Introduction to Technical Analysis & Candlestick Theory By - Dinesh Nagpal, Full Time Trader, Ichimoku & Trading Psychology Expert View Program Stock Trading Stock Investing Made Easy: Beginner's Stock Market Investment Course By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Point & Figure Chart Mastery: A Comprehensive Trading Guide By - Mukta Dhamankar, Full Time Trader, 15 Years Experience, Instructor View Program Stock Trading Cryptocurrency Made Easy: Cryptocurrency Course By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Market 104: Options Trading: Kickstart Your F&O Adventure By - Saketh R, Founder- QuickAlpha, Full Time Options Trader View Program Stock Trading Renko Chart Patterns Made Easy By - Kaushik Akiwatkar, Derivative Trader and Investor View Program Stock Trading RSI Trading Techniques: Mastering the RSI Indicator By - Dinesh Nagpal, Full Time Trader, Ichimoku & Trading Psychology Expert View Program Stock Trading Derivative Analytics Made Easy By - Vivek Bajaj, Co Founder- Stockedge and Elearnmarkets View Program Stock Trading Technical Analysis Made Easy: Online Certification Course By - Souradeep Dey, Equity and Commodity Trader, Trainer View Program Stock Trading Technical Trading Made Easy: Online Certification Course By - Souradeep Dey, Equity and Commodity Trader, Trainer View Program Stock Trading Ichimoku Trading Unlocked: Expert Analysis and Strategy By - Dinesh Nagpal, Full Time Trader, Ichimoku & Trading Psychology Expert View Program Stock Trading Commodity Markets Made Easy: Commodity Trading Course By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Options Trading Course For Beginners By - Chetan Panchamia, Options Trader View Program Stock Trading Options Scalping Made Easy By - Sivakumar Jayachandran, Ace Scalper View Program Stock Trading Market 103: Mastering Trends with RMI and Techno-Funda Insights By - Rohit Srivastava, Founder- Indiacharts.com View Program Stock Trading Technical Analysis for Everyone - Technical Analysis Course By - Abhijit Paul, Technical Research Head, Fund Manager- ICICI Securities View Program Godavari Biorefineries IPO review Analysts are neutral on the public offer as even though the company is the largest global manufacturer of MPO and a key player in ethanol based specialty chemicals, it is facing financial challenges .
"The company is burdened with significant debt. The IPO appears to be highly priced. While the company may benefit from the liberalized ethanol production norms, the current IPO valuation is not recommended.
Investors who believe in the company's long-term prospects and are willing to accept the risks associated with the high debt and recent financial challenges may consider applying with caution," said Swastika Investmart. Other details Proceeds from the fresh issue will be used to repay Rs 240 crore of debt, with the remainder allocated for general corporate purposes. As of June 2024, Godavari Biorefineries had consolidated debt of Rs 748.
9 crore. The company is one of India’s largest ethanol producers by volume, with a bio-refinery capacity of 570 KLPD for ethanol production. Its diverse portfolio includes bio-based chemicals, sugar, ethanol, and power, catering to industries such as food, beverages, pharmaceuticals, personal care, and fuel.
In line with government initiatives to boost ethanol blending, Godavari plans to expand its distillery capacity from 600 KLPD to 1,000 KLPD. Godavari Biorefineries supplies products to leading companies including Hershey India, Hindustan Coca-Cola Beverages, and LANXESS India, among others. Financially, the company's profit fell to Rs 12.
3 crore for the year ending March 2024, down from Rs 19.6 crore the previous year, while revenue dropped to Rs 1,686.7 crore from Rs 2,014.
7 crore. For the June 2024 quarter, the company posted a loss of Rs 26.1 crore on revenue of Rs 522.
5 crore. The IPO is being managed by Equirus Capital and SBI Capital Markets, with Link Intime India serving as the registrar. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own.
These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel ).
