Godavari Biorefineries IPO Closes Today

25 Oct 2024 , 12:35 PM

Godavari Biorefineries’ IPO, opened on October 23, 2024 is closing today on October 25, 2024.  At the time of writing on the third day of subscription at 12:26 pm, the IPO has witnessed an overall subscription of 0.74 times subscription. The Retail investors’ portion received 0.29 times subscription, NIIs at 0.41 times, while the QIBs’ portion is yet to be booked.

Shares are offered at a price range of ₹334-₹352, with a minimum application size of 42 shares. The IPO includes a fresh issue of ₹325 Crore and an offer-for-sale of 6.52 million shares.

By October 24, the IPO was subscribed 46%, driven mainly by retail investors at 83%. Non-institutional investor (NII) allocation reached 20%, while Qualified Institutional Buyers (QIBs) showed limited participation.

Founded in 1956, Godavari Biorefineries produces ethanol-based chemicals and offers bio-based chemicals, sugar, ethanol, and power, catering to sectors such as food, beverages, pharmaceuticals, and personal care. Its major clients include Hershey India and Coca-Cola.

For Q1 FY25, Godavari reported a net loss of ₹26.11 Crore on revenue of ₹525.27 Crore. The company reported a net profit of ₹12.30 Crore with total revenue of ₹1,701.06 Crore for FY24.

The IPO attracted ₹166.42 Crore from 15 anchor investors, with 4.72 million shares allocated at ₹352 each. Qualified Institutional Buyers have 50% allocation, NIIs 15%, and retail investors 35%.

Financial challenges persist for Godavari due to ethanol production restrictions and recent natural disasters. GEPL Capital advises caution on the high valuation, indicating a “subscribe” rating but noting aggressive pricing.

Equirus Capital and SBI Capital Markets are the lead managers, with shares expected to list on BSE and NSE on October 30.