Godavari Biorefineries initial public offering (IPO) witnessed a slow start on October 23, the first day of bidding. Godavari Biorefineries IPO
According to subscription data from the exchanges, retail investors subscribed 0.48 times or 48 percent, while non-institutional investors portion was subscribed 0.12 times or 12 percent. Qualified institutional buyers portion remained unsubscribed.
On October 22, the ethanol producer raised ₹166.42 crore from 15 anchor investors at the upper price band, out of the total issue size. Notable participants in the anchor book included ICICI Prudential Mutual Fund, HDFC Mutual Fund, Whiteoak Capital Mutual Fund, 360 ONE Equity Opportunity Fund, Goldman Sachs, Societe Generale, and the Carnelian Structural Shift Fund, backed by Vikas Khemani.
Godavari Biorefineries IPO details
The Godavari Biorefineries IPO will be open for subscription from October 23 to 25, with a price range of ₹334 to ₹352 per share. The IPO includes a fresh equity issue worth ₹325 crore and an Offer-for-Sale (OFS) of 65.27 lakh shares, amounting to ₹230 crore, by promoters and an investor.
This brings the total IPO size to ₹555 crore. Private equity firm Mandala Capital AG Ltd will be selling 49.27 lakh shares through the OFS.
The proceeds from the fresh issue will primarily go towards repaying ₹240 crore in debt, with the rest allocated for general corporate purposes.
At the upper price band, the company’s valuation stands at ₹1,800 crore. Of the total issue, 50 per cent is reserved for qualified institutional buyers, 35 per cent for retail investors, and 15 per cent for non-institutional investors.
Godavari Biorefineries, located in Maharashtra, is a prominent producer of ethanol-based chemicals in India. The company offers a varied range of products, including bio-based chemicals, sugar, ethanol, and power. These products cater to several sectors, such as food and beverages, pharmaceuticals, flavors and fragrances, power, fuel, personal care, and cosmetics.
SBI Capital Markets and Equirus Capital Markets are acting as the lead managers for the IPO.
Godavari Biorefineries IPO GMP
The shares of Godavari Biorefineries is currently not trading in the grey market. This means that the estimates listing price of Godavari Biorefineries IPO is likely to be ₹352.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
