Godavari Biorefineries Ltd has announced a price band of ₹334 to ₹352 per share for its upcoming initial public offering (IPO) worth ₹555 crore. The IPO will be open for subscription from October 23 to October 25, with anchor bidding beginning on October 22. The basis of allotment is set for October 28, and refunds and credit of equity shares to demat accounts will occur on October 29. The stock is expected to list on exchanges on October 30.
The IPO comprises a fresh issue of ₹325 crore and an offer-for-sale (OFS) of up to 6.53 million shares by existing shareholders and promoters. Mandala Capital AG, a private equity firm, will exit by selling its entire stake of 49,26,983 equity shares, with an acquisition cost of ₹188.91 per share, making it the largest seller in the OFS. Other sellers include Somaiya Agencies, Samir Shantilal Somaiya, and Lakshmiwadi Mines and Minerals, among others.
Proceeds from the fresh issue will be used to repay ₹240 crore of debt, with the remaining funds allocated for general corporate purposes. As of June 2024, the company had consolidated debt amounting to ₹748.9 crore.
Godavari Biorefineries is one of India’s largest ethanol producers by volume, with a bio-refinery that has an installed capacity of 570 KLPD for ethanol manufacturing. Its product portfolio includes bio-based chemicals, sugar, ethanol, and power, which are supplied to various industries such as food, beverages, pharmaceuticals, and personal care.
In response to government initiatives promoting ethanol blending in fuel, the company plans to expand its distillery capacity from 600 KLPD to 1,000 KLPD. Key clients include Hershey India, Hindustan Coca-Cola Beverages, and LANXESS India, among others.
Financially, the company has faced challenges. It recorded a profit of ₹12.3 crore for the year ended March 2024, down from ₹19.6 crore in the previous year. Revenue also declined, from ₹2,014.7 crore to ₹1,686.7 crore during the same period. In the June 2024 quarter, the company posted a loss of ₹26.1 crore on revenue of ₹522.5 crore.
The IPO is being managed by Equirus Capital and SBI Capital Markets, with Link Intime India acting as the registrar to the offer.
