Godavari Biorefineries’s IPO to Launch on 23rd Oct; Sets IPO Price Band at Rs.334-352
Godavari Biorefineries Ltd has finally announced the price band for its much-awaited initial public offering (IPO), which is being pitched in the range of Rs.334 and Rs.352 per share. The offer has been scheduled to open on October 23, 2024, and will remain open till October 25, 2024.
The fresh issue will amount to Rs.325 crore, while the offer for sale will involve more than 65 lakh equity shares amounting to Rs.230 crore. In the OFS, existing shareholders and promoters are participating in it, including private equity firms that would be exiting the company by selling their entire 49 lakh equity share stake. Other selling promoters include different investment firms and agencies.
Preparations towards IPO Launch
The company will finalize its final anchor round of institutional investors on October 22, 2024. The shares are to be listed on stock exchanges by October 30, 2024.
The net proceeds of the issue would be majorly utilized for debt servicing. Out of the proceeds, Rs.240 crore is proposed to set off outstanding liabilities. Till June 2024, the company had a consolidated debt of Rs.748.9 crore. The balance proceeds of the issue are proposed to be utilized for general corporate purposes. The lead book-running managers for the offer are SBI Capital Markets Ltd and Equirus Capital Pvt Ltd.
Godavari Biorefineries is an ethanol-based chemicals manufacturer that offers various products in the form of bio-based chemicals, sugar, ethanol and power. It possesses two bio-refineries in the states of Maharashtra and Karnataka, producing 570 kiloliters of ethanol each day.
Godavari Biorefineries sells its products to clients ranging from companies such as Hershey India and Hindustan Coca-Cola Beverages, as well as other major oil marketing firms among others.
The bottom line is also hit, with the firm reporting a profit of Rs.12.3 crore during the financial year 2024. It was Rs.19.6 crore in the previous financial year. Its revenue also fell from Rs.2,014.7 crore in FY23 to Rs.1,686.7 crore in FY24. Additionally, in the quarter ending June 30, 2024, Godavari Biorefineries recorded a loss of Rs.26.1 crore on revenue of Rs.522.5 crore.
