Godavari Biorefineries IPO subscribed almost 50%

24 Oct 2024 , 03:04 PM

Godavari Biorefineries’ IPO had a delayed response; on the second day of the bidding procedure, just 49% of the shares had been subscribed for. Subscriptions for the issue will be accepted through October 25.

Investors can bid for 42 shares in a single lot at the company’s set price range of Rs 334–352 per share.

The proceeds of the new offer would be used to pay off a debt of Rs 240 crore, with the remaining funds going towards general business needs. Godavari Biorefineries had Rs 748.9 crore in total debt as of June 2024.

The retail component of the issue, which had a 88% subscription as of 15:01 pm, received the most bids, followed by the non-institutional investors (NIIs), who had a 21% subscription.

Of the 31,45,977 shares set aside for qualified institutional buyers (QIBs), they had only placed bids for 8,526 shares.

The IPO comprises an offer-for-sale (OFS) of up to 6.53 million shares by current shareholders and promoters, as well as a new issuance valued at Rs 325 crore. Mandala Capital AG, a private equity firm, will sell all 49,26,983 of its shares in the OFS in order to exit the business.

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