Godavari Biorefineries files DRHP for IPO

18 Jun 2024 , 12:20 PM

Godavari Biorefineries, a leading manufacturer of ethanol-based chemicals in India, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).

The IPO includes a fresh issue of shares worth ₹325 Crore and an offer for sale (OFS) of up to 6.53 million shares by existing shareholders and promoters. The OFS breakdown is as follows:

• Mandala Capital AG: up to 4.93 million shares
• Somaiya Agencies: up to 5 lakh shares
• Samir Shantilal Somaiya: up to 2 lakh shares
• Lakshmiwadi Mines and Minerals: up to 2 lakh shares
• Filmedia Communication Systems: up to 3 lakh shares
• Somaiya Properties and Investments: up to 1 lakh shares

The proceeds from the fresh issue will be used primarily to repay debt worth ₹240 Crore. As of March 2024, the company’s total debt stood at ₹686 Crore. Equirus Capital Private Limited and SBI Capital Markets Limited are the Book Running Lead Managers for the IPO.

Godavari Biorefineries offers a diverse portfolio of bio-based chemicals, sugar, ethanol, and power. It serves various industries including food, beverages, pharmaceuticals, fragrances, power, fuel, personal care, and cosmetics. As of March 31, 2024, it is one of India’s largest ethanol producers with a capacity of 570 KLPD. The company’s client list includes notable names such as Hershey India, Hindustan Coca-Cola, LANXESS India, IFF Inc., and major oil companies. Godavari Biorefineries has also expanded its operations globally, serving customers in over 20 countries, including the USA, UK, China, Germany, and Japan.

For the financial year 2024 (FY24), Godavari Biorefineries reported a total revenue of ₹1,686.67 Crore, compared to ₹2,014.69 Crore in the previous year. The net profit for FY24 stood at ₹12.30 Crore, down from ₹19.64 Crore in the prior year.