Godavari Refineries IPO: Things you must know before investing

22 Oct 2024 , 12:51 PM

Ethanol-based chemical manufacturer, Godavari Refineries is coming up with its IPO from October 23-25, 2024. As on March 31, 2024, the company is the largest MPO producer in the world as per installed capacity. The company produces bio-based chemicals, sugar, various grades of ethanol, and power products which are further be used in multiple industries such as food, beverages, pharmaceuticals, flavours and fragrances, power, fuel, personal care, and cosmetics.

Some of the top things you should know about Godavari Refineries IPO are:

1. Godavari Refineries IPO important dates:

• • The IPO will open for subscription from October 23-25, 2024.
  • The company will finalise the allotment on October 28, 2024.
  • Initialisation of refunds and credit of shares in demat account will be done on October 29, 2024.
  • The listing of shares will takes place on October 30, 2024.

2. IPO Lot size: Investors can bid for a minimum of 42 shares in a lot and its multiples thereof.
3. IPO price band: The company has fixed the IPO price band at ₹334 to ₹352 per share.
4. IPO Issue size: As per RHP, the company plans to raise ₹554.75 crore from the IPO which comprises fresh issue of equity shares worth ₹325 crore and an offer-for-sale (OFS) of ₹229.75 crore. The private equity firm Mandala Capital AG will be offloading its shares via IPO.
5. Objects of the IPO: The company will use net proceeds from the IPO towards repayment/pre-payment of debt of the company and for other general purposes.
6. Financials of the company: On the financial front, the company has posted profit for the last 3 fiscals. The company reported profit of ₹19.10 crore in FY22, ₹19.64 crore profit in FY23 and ₹12.30 crore in FY24. Meanwhile, the company has posted loss ₹26.11 crore in Q1FY25 due to sudden ban on ethanol blending by the government.
7. Managers of the IPO: The public offering has been managed by Equirus Capital Pvt Ltd and SBI Capital Markets Limited while Link Intime India Pvt Ltd is the registrar to the IPO.