Godavari Biorefineries Ltd has set a price range of ₹334-352 per share for its upcoming ₹555-crore initial public offering (IPO), which will open for subscription on October 23 and close on October 25. The anchor investor bidding starts on October 22. The allotment will be finalized on October 28, with refunds and credit of shares to demat accounts on October 29. The shares will list on stock exchanges on October 30.
The IPO includes a fresh issue of ₹325 crore and an offer-for-sale (OFS) of up to 6.53 million shares by existing shareholders and promoters. The largest participant in the OFS is private equity firm Mandala Capital AG, which will exit its entire stake of 49,26,983 shares, acquired at an average cost of ₹188.91 per share. Other sellers include promoters such as Somaiya Agencies, Samir Shantilal Somaiya, Lakshmiwadi Mines and Minerals, Filmedia Communication Systems, and Somaiya Properties.
The proceeds from the fresh issue would be used to repay debt of ₹240 crore, and the rest for general corporate purposes. Consolidated debt of the company was at ₹748.9 crore as on June 2024.
Godavari Biorefineries Pvt Ltd is one of the single largest producers of ethanol in the country in terms of volume. It is planning expansion of the distillery capacity from 600 KLPD to 1,000 KLPD in line with the government move on increasing per cent of ethanol blending in fuel. The current bio-refinery capacity of the company is at 570 KLPD that produces a wide range of bio-based chemicals, sugar, ethanol, and power for food, beverages, pharmaceuticals, and personal care industries.
The company has been having a tough time financially: its profit for the year ending March 2024 is ₹12.3 crore against ₹19.6 crore in the previous year, while revenue fell to ₹1,686.7 crore from ₹2,014.7 crore. It has given a loss of ₹26.1 crore for the quarter ended June 2024 on revenue of ₹522.5 crore.
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Source: Moneycontrol
News Desk
