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Introduction to Godavari Biorefineries Ltd IPO
Godavari Biorefineries is preparing to launch a Rs 554.75 crore book. This IPO subscription is an amalgamation of a fresh issue of Rs 325 crore (0.92 crore shares) and an offer-for-sale of Rs 229.75 crore (0.65 crore shares). The firm will be listed on both BSE and NSE.
Retail investors need to invest a minimum of Rs 14,784. Small NII investors require a minimum investment of Rs 206,976 for 588 shares, which is 14 lots. Large NII investors need a minimum investment of Rs 1,005,312 for 2,856 shares, which is 68 lots.
Link Intime India Pvt Ltd is the registrar to the issue. Equirus Capital Pvt Ltd and SBI Capital Markets Ltd are the book running lead managers in this IPO.
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Godavari IPO GMP
Godavari IPO GMP Today is Rs 15, as of 25th October, 2024 9:30 AM. The IPO has a price band of Rs 352. The estimated listing price for Godavari Biorefineries Ltd is Rs 367, reflecting a potential gain of 4% per share.
Godavari Biorefineries Ltd IPO Company Details
Godavari Biorefineries Limited was founded in 1956 and produces ethanol-based chemicals in India. As of 30th June, 2024, it runs an integrated biorefinery with a 570 KLPD ethanol production capacity.
As of 31st March, 2024, it is the world’s largest producer of MPO by installed capacity and one of only two global manufacturers of natural 1,3-butanediol. It is also the only company in India making bio ethyl acetate.
They offer a vast portfolio of goods such as bio-based chemicals, sugar, ethanol, and energy in addition to serving food, drink, drug, and cosmetic related verticals.
They possess three DSIR registered R&D centres at Sakarwadi, Sameerwadi, and Navi Mumbai. Under DSIR, 30th June 2024, it employed 52 permanent research staff, out of which eight are PhD scientists.
By October 2024, the company secured 18 patents and 53 product/process registrations across various countries.
Its clients include major companies like Hershey India, Coca-Cola etc and serves customers in over 20 countries, including the USA, UK, China, and Germany.
The organisation maintains two manufacturing units, one each in the states of Karnataka and Maharashtra and employs 1583 permanent workers which include 437 semi-skilled and unskilled individuals.
Godavari Biorefineries Ltd IPO Details
| Godavari Biorefineries Ltd IPO Opening Date and Closing Date | 23rd October to 25th October |
| Face Value | Rs 10 per share |
| Price Band | Rs 334 to Rs 352 per share |
| Lot Size | 42 Shares |
| Total Issue Size | 15,759,938 shares (aggregating up to Rs 554.75 Cr) |
| Fresh Issue | 9,232,955 shares (aggregating up to Rs 325 Cr) |
| Offer for Sale | 6,526,983 shares (aggregating up to Rs 229.75 Cr) |
| Issue Type | Book-Built Type Issue |
| Listing At | NSE, BSE |
| Shareholding Pre-Issue | 41,943,023 |
| Shareholding Post Issue | 51,175,978 |
| Basis of Allotment | Monday, 28th October, 2024 |
| Refund Initiation | Tuesday, 29th October, 2024 |
| Credit of Shares in Demat | Tuesday, 29th October, 2024 |
| Listing Date | Wednesday, 30th October, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on 25th October, 2024 |
| Draft Red Herring Prospectus | Link |
| Red Herring Prospectus | Link |
Godavari Biorefineries IPO lot size, shares, and their value:
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 42 | Rs 14,784 |
| Retail (Max) | 13 | 546 | Rs 192,192 |
| S-HNI (Min) | 14 | 588 | Rs 206,976 |
| S-HNI (Max) | 67 | 2,814 | Rs 990,528 |
| B-HNI (Min) | 68 | 2,856 | Rs 1,005,312 |
Investor categories and Godavari Biorefineries Ltd shares offered:
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not more than 15.00% of the Offer |
Godavari Biorefineries Ltd Financials:
For the period ended on 31st March, 2024 & 31st March, 2023:
| Periods Ended | 31st Mar, 2024 | 31st Mar, 2023 |
| Assets | Rs 1,991.66 Cr. | Rs 1,743.52 Cr. |
| Revenue | Rs 1,701.06 Cr. | Rs 2,023.08 Cr. |
| Profit After Tax | Rs 12.30 Cr. | Rs 19.64 Cr. |
| Net Worth | Rs 260.25 Cr. | Rs 249.01 Cr. |
| Reserves and Supplies | Rs 458.74 Cr. | Rs 447.51 Cr. |
| Total Borrowing | Rs 663.27 Cr. | Rs 738.01 Cr. |
Should You Invest in the Godavari Biorefineries IPO?
Financial Performance:
Revenue: The company generated Rs 525.27 crore in revenue during the period ended on 30th June, 2024.
Profit After Tax (PAT): The company incurred a loss of Rs 26.11 crore after deducting taxes.
Net Worth: The company’s net worth, which represents the total value of the company’s assets minus its liabilities, is Rs 233.84 crore.
Financial Position:
Assets: The company’s total assets amounted to Rs 1,554.62 crore.
Reserves and Surplus: The company has accumulated reserves and surplus of Rs 432.34 crore.
Total Borrowing: The company has borrowed a total of Rs 703.75 crore.
Godavari Biorefineries Key Performance Indicators (KPI) and their values:
The market capitalisation of Godavari Biorefineries Ltd IPO is Rs 1801.39 crore. As of 30th June, KPI and their values are:
| KPI | Values |
| Return on Equity (ROE) | -11.16% |
| Return on Capital Employed (ROCE) | -2.35% |
| Return on Net Worth (RoNW) | -11.16% |
| Price to Book Value (P/BV) | 6.31 |
| Debt/Equity | 3.01 |
| PAT Margin (%) | -4.97 |
Objectives of Godavari Biorefineries Ltd IPO
The company plans to use the net proceeds from the fresh issue for:
- Repaying or prepaying part or all of its outstanding borrowings.
- General corporate purposes.
Some major risks associated with the Godavari Biorefineries Ltd IPO are:
- Raw materials, excluding sugarcane, are sourced from a very few major vendors for the company. This would mean catastrophe in case it fails to source them.
- Raw material costs comprised nearly all of the expenses incurred by the company during the three months to June 2024, and any further increase may do damage to profitability.
- Godavari Biorefineries procures retail brand ‘Jivana’ from third-party manufactures. Any disruption in supply of the same would have an adverse effect on business.
- The sugar, distillery, and cogeneration segments are seasonal and subject to fluctuations that affect operations.
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Frequently Asked Questions (FAQs)
What is the price band of Godavari Biorefineries IPO?
Price band has been fixed at Rs 334 and Rs 352 per share.
What is the retail investor quota of Godavari Biorefineries IPO?
A minimum of 35% shares shall go to the retail investors.
Where can I track Godavari Biorefineries stock performance?
You can track it on Unicorn Signals after listing.
How can I apply for Godavari Biorefineries Initial Public Offer?
Through your demat account or through your bank/financial institution during the IPO period.
When is the Last Date of IPO subscription for Godavari Biorefineries?
The cut-off time is on 25th October, 2024, by 5 PM; however, most brokers do not take any more applications after 1-3 PM.
