The IPO involves an offer by the company’s current shareholders and promoters to sell up to 6.53 million shares and a fresh issue worth ₹325 crore. In the OFS, Somaiya Properties and Investments may contribute up to 100,000 shares; Filmedia Communication Systems may contribute up to 300,000 shares; Lakshmiwadi Mines & Minerals and Samir Shantilal Somaiya may both contribute up to 200,000 shares; Somaiya Agencies may contribute up to 500,000 shares; and Mandala Capital AG may contribute up to 4.93 million shares.
The company aims to pay off ₹240 crore of its debt with the money raised from the fresh issue. The total debt of Godavari Biorefineries was ₹686 crore at the end of March 2024. SBI Capital Markets Limited and Equirus Capital Private Limited are the IPO’s Book Running Lead Managers.
Godavari Biorefineries provides the beverage, food, fuel, fragrance, pharmaceutical, cosmetics, and personal care industries with a wide range of bio-based chemicals, ethanol, power, and sugar. Hindustan Coca-Cola, IFF Inc., Hershey India, several major oil companies, and LANXESS India are the main clients of the company. With a capacity of 570 Kilo liters per day, it ranks among India’s biggest manufacturers of ethanol until March 31, 2024. With its global expansion, the company now serves clients in more than 20 nations, which include China, the UK, Japan, the USA, and Germany.
The company’s overall revenue for Financial year 2024 was ₹1,686.67 crore, down from ₹2,014.69 crore the previous year, with net profit decreasing from ₹19.64 crore to ₹12.30 crore during the same duration.
This upcoming IPO represents a significant milestone in the company’s growth and financial strategy. The IPO GMP will impact the potential valuation of Godavari Biorefineries’ shares and overall market sentiment.
