Godavari Biorefineries Limited
Godavari Biorefineries Limited launches an IPO to raise Rs 554.75 crores through a combination of fresh issue and offer for sale. The IPO opens on October 23, 2024 and closes on October 25, 2024, with shares priced between ₹334 to ₹352. The company is India's largest manufacturer of ethanol-based chemicals and operates an integrated biorefinery.
RI
by RA ALOK DAIYA SEBI Reg. INH000011468
IPO Details and Timeline
1
IPO Opens
October 23, 2024
2
IPO Closes
October 25, 2024
3
Basis of Allotment
October 28, 2024
4
Refund Initiation
October 29, 2024
5
Credit of Shares
October 29, 2024
6
Listing Date
October 30, 2024
The IPO consists of a fresh issue of 0.92 crore shares (₹325.00 crores) and an offer for sale of 0.65 crore shares (₹229.75 crores). The minimum lot size is 42 shares, with a minimum investment of ₹14,784 for retail investors. The shares will be listed on BSE and NSE.
About Godavari Biorefineries Limited
Incorporated in 1956, Godavari Biorefineries Limited is a leading manufacturer of ethanol-based chemicals in India. As of June 30, 2024, the company operates an integrated biorefinery with a capacity of 570 KLPD for ethanol production. It is the largest producer of MPO in the world based on installed capacity and one of only two manufacturers of natural 1,3-butanediol.
1
Product Portfolio
Bio-based chemicals, sugar, various grades of ethanol, and power
2
Research Facilities
Three R&D facilities registered with DSIR, employing 52 permanent research staff
3
Patents
18 patents obtained and 53 registrations received across various countries
4
Manufacturing Facilities
Two facilities located in Bagalkot, Karnataka, and Ahmednagar, Maharashtra
Client Base and Market Presence
Godavari Biorefineries serves a diverse client base including marquee players in various industries:
- Hershey India Pvt Ltd
- Hindustan Coca-Cola Beverages Private Limited
- M/s Karnataka Chemical Industries
- LANXESS India Private Limited
- IFF Inc.
- Privi Speciality Chemicals Limited
- Major oil marketing companies
The company has a global presence, serving customers in over twenty countries including Australia, China, Germany, France, Italy, Japan, Kenya, the Netherlands, Singapore, the United Kingdom, the United Arab Emirates, Indonesia, and the United States.
Financial Information
Godavari Biorefineries Limited's financial performance for recent periods:
Note: All amounts are in ₹ Crore
The company's revenue decreased by -15.92% and profit after tax (PAT) dropped by -37.37% between the financial year ending with March 31, 2024 and March 31, 2023.
Key Performance Indicators
Market Capitalization
Rs 1801.39 Cr
ROE
-11.16%
ROCE
-2.35%
Debt/Equity
3.01
Additional KPIs as of June 30, 2024:
- RoNW: -11.16%
- P/BV: 6.31
- PAT Margin (%): -4.97
IPO Objectives and Lead Managers
The company intends to utilize the Net Proceeds from the Fresh Issue towards:
- Repayment/pre-payment, in full or in part, of certain outstanding borrowings availed by the Company
- General corporate purposes
Lead Managers for the Godavari Biorefineries IPO:
- Equirus Capital Private Limited
- SBI Capital Markets Limited
The registrar for the IPO is Link Intime India Private Ltd.
IPO Review
Godavari Biorefineries is the largest manufacturer of MPO worldwide and specializes in ethanol-based chemicals. The company faced challenges in FY23 and FY24 due to a government ban on ethanol production and natural disasters. However, the IPO is attractively priced, considering the improved outlook following liberalized ethanol production norms and a blending ratio increase to around 20%. This positions the company for strong growth.
Therefore, on considering the overall aspects, this IPO can be opted for long- term with caution, by those investors who have cash surplus and suitable risk appetite.