Godavari Biorefineries, a major player in the biorefinery industry, is set to launch its highly anticipated initial public offering (IPO) on October 23, 2024. The IPO aims to raise ₹554.75 crore through a mix of fresh issues and an offer-for-sale (OFS).
The price band has been set at ₹334-352 per share, and the IPO will close on October 25, 2024. This article covers all the essential details you need to know about the upcoming IPO.
Godavari Biorefineries IPO Details
Godavari Biorefineries is planning to raise ₹554.75 crore, of which ₹325 crore will come from the fresh issue, and ₹229.75 crore from the offer-for-sale component. The company plans to use the funds from the fresh issue primarily for debt repayment and general corporate purposes.
The OFS will see Mandala Capital offloading its entire stake of 49,26,983 equity shares, which were acquired at an average price of ₹188.91 per share. Other key shareholders, including the Somaiya family and related entities, will also participate in the OFS.
| Details | Information |
|---|---|
| IPO Opening Date | October 23, 2024 |
| IPO Closing Date | October 25, 2024 |
| Price Band | ₹334 to ₹352 per share |
| Total Issue Size | ₹554.75 crore |
| Fresh Issue | ₹325 crore |
| Offer for Sale (OFS) | ₹229.75 crore |
| Anchor Investment Date | October 22, 2024 |
| IPO Allotment Date | October 28, 2024 |
| Listing Date | October 30, 2024 |
| Purpose of Funds | Debt repayment and general corporate purposes |
| Prominent Shareholders in OFS | Mandala Capital, Somaiya Agencies, and others |
Financial Outlook and Investment Considerations
Godavari Biorefineries is one of the largest producers of ethanol and related products in India. The company has a diversified portfolio that includes ethanol, sugar, chemicals, and power generation, making it a significant player in the biorefinery industry.
The funds raised from the IPO will help reduce debt and improve the company’s balance sheet, positioning it for further growth in the renewable energy sector.
Investors should also be aware of the potential risks associated with the IPO. Market volatility, interest rate changes, and the company’s exposure to commodity price fluctuations are factors that could impact its financial performance.
However, the strong demand for ethanol, driven by government initiatives promoting ethanol blending in fuels, presents a promising growth opportunity for Godavari Biorefineries.
The IPO allotment date is expected to be October 28, with the listing likely on October 30. Retail investors interested in subscribing should keep an eye on the anchor investment date, scheduled for October 22.
Disclaimer
The content provided in this article is for informational purposes only and should not be construed as investment advice. Please consult your financial advisor for personalized guidance.
