Godavari Biorefineries began trading on October 30 with a lackluster debut, listing at Rs 308 per share on the National Stock Exchange (NSE). This marked a 12.5% discount from its issue price of Rs 352 per share, reflecting cautious investor sentiment despite strong subscription interest from Qualified Institutional Buyers (QIBs).
The Rs 554.75 crore IPO consisted of a fresh issue of 92 lakh shares, which mobilised Rs 325 crore, and an offer-for-sale of 65 lakh shares for Rs 229.75 crore. The public issue opened for bidding on October 23 and closed on October 25, and received an overall subscription of 1.9 times. QIBs were aggressive in demand, subscribing 2.8 times, followed by retail subscribers at 1.8 times. NIIs remained low key, subscribing just 0.9 times.
Priced in a band of Rs 334 to Rs 352 per share, proceeds from the IPO will primarily be used to repay outstanding borrowings and for general corporate purposes.
Managed by Equirus Capital Pvt Ltd and SBI Capital Markets Ltd, the IPO’s registrar was Link Intime India Pvt Ltd. Ahead of the listing, Godavari Biorefineries had raised Rs 166.42 crore from anchor investors on October 22.
Godavari Biorefineries was established in 1956 and is the leading manufacturer of ethanol-based chemicals. The company has a diversified portfolio involving bio-based chemicals, sugar, ethanol, and power. Its products cater to industries related to food, beverages, pharmaceuticals, cosmetics, and power; it is therefore rightly positioned as one of the large players in the bio-based chemical industry in India.
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Source: Moneycontrol
News Desk
