Godavari Biorefineries Limited is making its market debut today, October 30, 2024, with shares listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The company’s initial public offering (IPO), which was open for subscription from October 23 to October 25, raised approximately ₹554.75 crore, including a fresh issue of ₹325 crore and an offer for sale worth ₹229.75 crore.
Key Details of the IPO
- Price Band: The shares were offered at a price range of ₹334 to ₹352 per share, with a minimum lot size of 42 shares for retail investors.
- Subscription Status: The IPO received an overall subscription of 1.83 times, with strong interest from qualified institutional buyers (QIBs) at 2.76 times their allotted quota, and retail investors subscribing 1.71 times.
- Grey Market Premium (GMP): As of October 30, 2024, at 06:03 AM, the Grey Market Premium for Godavari Biorefineries stands at ₹5. This implies an expected listing price of approximately ₹357 per share (cap price + today’s GMP), which suggests a modest gain of about 1.42% upon listing.
Company Background
Established in 1956, Godavari Biorefineries is one of India’s largest integrated bio-refineries and a major producer of ethanol. The company’s product range includes bio-based chemicals, sugar, rectified spirits, and various grades of ethanol, catering to diverse sectors such as agrochemicals, cosmetics, pharmaceuticals, and beverages.
Utilization of IPO Proceeds
The funds raised from the IPO will primarily be used for:
- Repayment or pre-payment of certain borrowings amounting to ₹240 crore
- General corporate purposes accounting for ₹85 crore
Market Watch
The listing of Godavari Biorefineries marks an important milestone in the company’s growth journey, as it aims to strengthen its position in the bio-refinery sector. Investors are expected to closely monitor the stock’s initial performance, particularly in light of the GMP and broader market conditions.
The stock is scheduled to list at 10:00 AM today on both BSE and NSE.
