Godavari Biorefineries Limited
Godavari Biorefineries Limited(GODAVARIB)
Total Shares
1,57,59,938
Issue Size
₹554.75 Cr
Price Band
₹334 – ₹352
Lot Size
42 shares
Min. Investment
₹14,784
Max. Investment
₹14,784
Open Date
23 Oct, 2024
Close Date
25 Oct, 2024
Allotment
28 Oct, 2024
Listing
30 Oct, 2024
Max. Investment
₹14,784
Announced
23 Oct, 2024
Opening Date
23 Oct, 2024
Closing Date
25 Oct, 2024
Basis of Allotment
28 Oct, 2024
Initiation of Refunds
29 Oct, 2024
Credit of Shares
29 Oct, 2024
Listing Date
30 Oct, 2024
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About Godavari Biorefineries Limited IPO
Incorporated in 1956, Godavari Biorefineries Limited manufactures 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.
As on March 31, 2024, the company is the largest producer of MPO in the world based on installed capacity. It is one of only two manufacturers of natural 1,3-butanediol and the only company in India that makes bio ethyl acetate.
The company's product portfolio i
Godavari Biorefineries Limited IPO Share Price and Issue Size
Issue Breakdown
Shareholding
Dilution: 22.0% increase in shares
Godavari Biorefineries Limited IPO Financials Health
Godavari Biorefineries Limited IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| SHNI Maximum | 67 | 2814 | ₹9,90,528 |
| BHNI Minimum | 68 | 2856 | ₹10,05,312 |
| Retail Minimum | 1 | 42 | ₹14,784 |
| Retail Maximum | 13 | 546 | ₹1,92,192 |
| SHNI Minimum | 14 | 588 | ₹2,06,976 |
(All values in CR)
Godavari Biorefineries Limited IPO Valuation
| Metric | Value |
|---|---|
| Debt/Equity | 3.01 |
| ROCE | -2.35% |
| ROE | -11.16% |
| RoNW | 11.16% |
(All values in CR)
Strength & Risk of Godavari Biorefineries Limited IPO
1. Prominent manufacturer of ethanol-based chemicals and one of the largest producers of ethanol in terms of volume.
2. India's largest integrated biorefinery in terms of installed capacity as of March 31, 2024.
3. Diversified product portfolio and well-established relationship with a diversified marquee customer base across industries and geographies.
4. Well-developed in-house research and development capabilities.
5. Member of the Somaiya group and experienced promoter, board of directors, key managerial personnel and senior management.
1. The company depends on a few suppliers for supply of a significant portion of raw materials (excluding sugarcane). Any failures to procure such raw materials from these suppliers may have an adverse impact on its manufacturing operations and results of operations.
2. The company derives a significant portion of its revenue from a few customers and the loss of one or more such customers, the deterioration of their financial condition or prospects, or a reduction in their demand for its products may adversely affect the company's business, results of operations, financial condition and cash flows.
3. The company derives a significant portion of its revenue from a few products. The company results of operations may be adversely affected if revenue from such products decline.
4. SEBI has in the past directed the Company to refund amounts received pursuant to certain allotments to Sameerwadi Sugarcane Farmers' Welfare Trust or to pro rata distribute Equity Shares, to beneficiaries of the Sameerwadi Sugarcane Farmers' Welfare Trust.
5. The company is dependent on certain third party manufacturers for the sale of products under its retail brand ivana'. Any disruption in such third party manufacturers' ability to supply these products or their failures to meet the quality standards or delivery timelines could adversely affect its business, financial condition and results of operations.
6. The company is dependent on the availability of sugarcane, molasses and feedstock for the manufacturing of its products in the sugar, distillery and cogeneration segments. Any shortage of sugarcane, molasses and feedstock may adversely affect its operations, growth prospects and results of operations.
7. There are certain outstanding legal proceedings involving the Company and some of its Promoters and Directors. Failures to defend these proceedings successfully may have an adverse effect on its business prospects, financial condition, results of ongoing operations and reputation.
8. The company has availed certain unsecured borrowings which may be recalled by its lenders at any time.
9. Its failures in maintaining the company quality accreditations and certifications may negatively impact its brand and reputation.
10. Its sugar, distillery and cogeneration segments are dependent on the availability of sugarcane which is subject to seasonal vagaries, adverse weather conditions, crop disease and pest attacks that may adversely affect crop yields impact the availability and quality of sugarcane and feedstock which may have an adverse impact on its business, financial condition and results of operations.
Godavari Biorefineries Limited IPO Subscription Status
| Investor Category | Subscription (times) | Shares Offered | Shares bid for | Total Amount (Rs Cr.) |
|---|---|---|---|---|
| Anchor | 1.00 | 47,27,980 | 47,27,980 | 166.42 |
| BHNI (10L+) | 0.56 | 15,75,994 | 8,75,070 | 30.8 |
| HNI | 0.93 | 23,63,991 | 21,98,112 | 77.37 |
| QIB | 2.76 | 31,51,989 | 86,89,212 | 305.86 |
| Retail | 1.76 | 55,15,978 | 97,29,048 | 342.46 |
| SHNI (2L - 10L) | 1.68 | 7,87,997 | 13,23,042 | 46.57 |
| Total | 1.87 | 1,10,31,958 | 2,06,16,372 | 725.7 |
Godavari Biorefineries Limited IPO GMP
Last updated 21 Oct, 2024 · Source: aggregated grey-market dealers
| Date | IPO Price | GMP | Sub2 Sauda | Est. Listing | Est. Profit | Updated |
|---|---|---|---|---|---|---|
| 21 Oct, 2024 | 352 | ₹0 | -- | ₹352 (0.00%) | - | 21 Oct, 2024 |
| 22 Oct, 2024 | 352 | ₹0 | -- | ₹352 (0.00%) | - | 22 Oct, 2024 |
| 23 Oct, 2024 | 352 | ₹0▼ | -- | ₹352 (0.00%) | - | 23 Oct, 2024 |
| 24 Oct, 2024 | 352 | ₹25▲ | 800/11200 | ₹377 (7.10%) | - | 24 Oct, 2024 |
| 25 Oct, 2024 | 352 | ₹15▲ | 500/7000 | ₹367 (4.26%) | - | 25 Oct, 2024 |
| 26 Oct, 2024 | 352 | ₹5 | 200/2800 | ₹357 (1.42%) | - | 26 Oct, 2024 |
| 29 Oct, 2024 | 352 | ₹5 | 200/2800 | ₹357 (1.42%) | - | 29 Oct, 2024 |
| 30 Oct, 2024 | 352 | ₹5 | 200/2800 | ₹357 (1.42%) | - | 30 Oct, 2024 |
Disclaimer: GMP is an unofficial signal from grey-market dealers and is not regulated by SEBI. Use it alongside subscription data and other research for informed decision-making.
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Godavari Biorefineries Limited (GBL) IPO
IPO Overview and Key Highlights
Godavari Biorefineries Limited (GBL), a leading player in the biorefinery space, is offering its Initial Public Offering (IPO), which consists of a fresh issue of up to Rs3,250 million and an Offer for Sale (OFS) of up to 6,526,983 equity shares. The IPO will be listed on both BSE and NSE. The proceeds from the IPO will be used for debt repayment, working capital, and general corporate purposes?.
Key IPO Details
- Type of Issue: 100% Book Built Issue
- Total Offer Size: Fresh issue up to Rs3,250 million and OFS of 6,526,983 equity shares.
- Offer for Sale (OFS): Includes shares from promoters and investor Mandala Capital AG Limited.
- Face Value: Rs10 per share
- Offer Opens: October 23, 2024
- Offer Closes: October 25, 2024?.
Company Overview
Godavari Biorefineries Limited is one of the largest integrated biorefineries in India. Established in 1956, the company is involved in the production of bio-based chemicals, ethanol, and other sustainable products. The company’s focus on renewable products positions it well in the growing bio-based economy?.
Financial Overview
GBL has demonstrated consistent growth, driven by increased demand for bio-based chemicals and ethanol. The company has a diversified product portfolio, including bio-ethanol, chemicals, power generation, and organic manure, allowing it to maintain stable revenue streams despite market volatility.
Key Strengths of Godavari Biorefineries Limited
- Strong Market Presence: GBL is a market leader in the production of bio-based chemicals and ethanol, a sector experiencing rapid growth.
- Sustainability Focus: With increasing demand for renewable energy and bio-based products, GBL’s focus on sustainability gives it a competitive edge.
- Experienced Management: Promoted by Samir Shantilal Somaiya, the company benefits from experienced leadership?.
IPO Pros and Cons
Pros
- Growing Demand for Bio-Energy: The global shift towards renewable energy sources like bio-ethanol creates a favorable market for GBL.
- Diversified Product Portfolio: GBL’s broad product offerings, from chemicals to renewable energy, help mitigate risks associated with reliance on a single product line.
- Use of IPO Proceeds: Funds will be used to strengthen the company’s balance sheet by reducing debt and supporting working capital?.
Cons
- Market Risks: GBL operates in a competitive market with other biorefinery and chemical companies, which could impact its market share.
- Dependence on Government Policies: GBL’s business, particularly ethanol production, is closely linked to government regulations and policies regarding renewable energy.
- First Public Issue: As this is GBL’s first public issue, the stock’s post-listing performance is uncertain?.
Risk Factors
Investors should consider the following risks:
- Regulatory Risks: Changes in government policies or subsidies related to renewable energy could affect the company’s revenue.
- Economic Sensitivity: The company’s operations are influenced by macroeconomic factors, including fluctuations in demand for bio-based chemicals and ethanol.
- Competition: The biorefinery and chemical sectors are highly competitive, with both domestic and international players?.
Conclusion
The Godavari Biorefineries Limited IPO offers a solid opportunity for investors looking to invest in the renewable energy and bio-based chemicals sectors. With strong market presence, a diversified product portfolio, and a focus on sustainability, GBL is positioned for long-term growth. However, potential investors should weigh the risks of market competition, regulatory dependencies, and the uncertainties of a first-time public offering before investing.
FAQs About Godavari Biorefineries Limited Ipo
Godavari Biorefineries Limited IPO will open on 23 Oct, 2024 and close on 25 Oct, 2024. Investors must apply within this period to participate.
The Godavari Biorefineries Limited IPO price band is set between ₹334.00 and ₹352.00 per share. The minimum lot size is 42, requiring an investment of at least ₹14784.00.
The Godavari Biorefineries Limited IPO shares are expected to be listed on 30 Oct, 2024, subject to regulatory approvals and final allotment.
You can track your Godavari Biorefineries Limited IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The Godavari Biorefineries Limited IPO will be listed on major stock exchanges such as NSE and BSE, where you can trade shares once they are listed.