One of the leading manufacturers of ethanol-based chemicals in India, Godavari Biorefineries Ltd., has submitted a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in an effort to generate money through initial public offerings.

The company’s present owners and promoters are offering to sell up to 6.53 million shares as part of the IPO in addition to the new issuance of Rs 325 crore.

The OFS consists of up to 4.93 million Mandala Capital AG shares, up to 5 lakh Somaiya Agencies shares, up to 2 lakh Samir Shantilal Somaiya shares, up to 2 lakh Lakshmiwadi Mines and Minerals shares, up to 3 lakh Filmedia Communication Systems shares, and up to 1 lakh Somaiya Properties and Investments shares.

The Rs 240 crore debt would be paid off with the proceeds of the new sale. As of March 2024, its entire debt was Rs 686 crore. Equirus Capital Private Limited and SBI Capital Markets Limited are the book-running lead managers for the IPO.

Godavari Biorefineries Limited supplies a wide variety of bio-based chemicals, sugar, ethanol, and power to the food, beverage, pharmaceutical, fragrance, fuel, personal care, and cosmetics industries.

With a 570 KLPD capacity as of March 31, 2024, it is among the biggest ethanol producers in India. IFF Inc., Hershey India, Hindustan Coca-Cola, LANXESS India, and significant oil firms are among its clientele. The company’s worldwide expansion has allowed it to service clients in more than 20 nations, including the USA, UK, China, Germany, and Japan.

The company’s total income grew from Rs 2014.69 crore in FY23 to Rs 1686.67 crore in FY24. Compared to the previous year’s Rs 19.64 crore, the net profit was Rs 12.30 crore during the same period.