Godavari Biorefineries Limited, one of India’s leading manufacturers of ethanol-based chemicals, has launched its Initial Public Offering (IPO) today, aiming to raise a total of ₹554.75 crores. This IPO includes a fresh issue of 92.32 lakh shares valued at ₹325.00 crores and an Offer for Sale of 65.26 lakh shares, totaling ₹229.74 crores. The subscription period for the Godavari Biorefineries IPO is open from October 23 to October 25, 2024, with allotment expected to be finalized on or around October 28, 2024. The shares are set to be listed on the BSE and NSE by approximately October 30, 2024.

The share price band for this IPO is set between ₹334 and ₹352 per equity share. At the upper price point, Godavari Biorefineries’ market capitalization will be approximately ₹1,801.39 crores. The lot size for this IPO is 42 shares, meaning retail investors must invest a minimum of ₹14,784, while High-Net-Worth Individuals (HNIs) are required to invest in 14 lots (588 shares), amounting to ₹2,06,976.

The IPO is being managed by SBI Capital Markets Limited and Equirus Capital Private Limited as the book-running lead managers, with LINK INTIME INDIA PRIVATE LIMITED serving as the registrar for the issue.

Godavari Biorefineries Limited IPO Grey Market Premium (GMP)

The current Grey Market Premium (GMP) for Godavari Biorefineries is reported at ₹0, reflecting the financial performance of the company and suggesting a lack of robust trading in the grey market. It is crucial to understand that trading based on GMP is unregulated and can lead to unreliable price discovery.

Godavari Biorefineries Limited IPO Live Subscription Status Today

As of 6:21 PM on October 24, 2024, the Godavari Biorefineries IPO has been subscribed 0.54 times on its second day of the subscription period. Investors can check the live subscription status on the BSE website.

Godavari Biorefineries Limited IPO Anchor Investors Report

Godavari Biorefineries has successfully secured ₹166.42 crores from anchor investors at a price of ₹352 per share, allocating 47,27,980 equity shares to these investors. These shares are drawn from the Qualified Institutional Buyers (QIBs) reservation portion.

Godavari Biorefineries Limited IPO Allotment Date - Step by Step Guide to Check Allotment Status Online

The allotment date for the Godavari Biorefineries IPO is scheduled for October 28, 2024. To check your allotment status, follow these steps:

• Navigate to the IPO allotment status page.
• Select Godavari Biorefineries Limited IPO from the dropdown list of IPOs.
• Enter your application number, PAN, or DP Client ID.
• Submit the details to check your allotment status.

These steps enable investors to efficiently confirm their allotment status and act accordingly.

Objectives of Godavari Biorefineries Limited IPO

The proceeds from the fresh issue will be allocated towards:

1. ₹2,400.00 million for repayment or pre-payment of certain outstanding borrowings.
2. General corporate purposes.

Godavari Biorefineries IPO Review

Godavari Biorefineries holds a significant position in the Indian market, being the largest integrated bio-refinery by installed capacity and one of the largest producers of ethanol in terms of volume. The company also leads globally as the largest manufacturer of MPO (Methyl Propylene Oxide) based on installed capacity and is unique in India for producing bio ethyl acetate and one of only two manufacturers of natural 1,3 butylene glycol.

For the three-month period ending June 30, 2024, Godavari Biorefineries reported revenues from operations of ₹5,252.73 million. For the fiscal years 2024, 2023, and 2022, revenues were ₹17,010.64 million, ₹20,230.79 million, and ₹17,099.76 million, respectively. The EBITDA for the same three-month period was reported as (₹94.90 million), while profit after tax was (₹261.06 million).

In terms of valuation, Godavari Biorefineries is issuing shares at a pre-issue EPS of ₹2.93 and a post-issue EPS of ₹2.40. The pre-issue P/E ratio is noted at 120.13x, and the post-issue P/E ratio at 146.66x, compared to the industry P/E ratio of 35.54x. The Return on Capital Employed (ROCE) for FY24 is 9.53%, and the Return on Equity (RoE) is 4.73%, indicating that the IPO is relatively high-priced.

The Grey Market Premium reflects potential listing gains of 0%, which, alongside the financial metrics, leads to the recommendation that risk-averse investors should avoid the Godavari Biorefineries Limited IPO for potential listing gains or long-term investment purposes.

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