Godavari Biorefineries Ltd., a manufacturer of bio-based chemicals and ethanol, set a price range of Rs 334–Rs 352 per share for its Rs 555 crore IPO, which will go live for subscription on October 23.
The company announced that the initial share sale will end on October 25 and that anchor investor bidding will open for one day on October 22.
IPO structure and size
The proposed initial share sale consists of an Offer for Sale (OFS) of 65.27 lakh equity shares valued at Rs 230 crore at the upper end of the price range by promoters, and Mandala Capital AG Ltd., a private equity firm, is selling 49.27 lakh shares via the OFS (offer for sale), in addition to a new issue of equity shares worth Rs 325 crore. This totals to Rs 555 crore for the entire IPO.
Use of IPO proceeds & market valuation
The Rs 240 crore in proceeds from the new issue will be used to pay off debt, with the remaining sum going towards general business needs.
At the upper end of the price range, the company's market valuation has been estimated at Rs 1,800 crore.
Registrar and book-running lead managers
The public issue's bookrunning lead managers are Equirus Capital Markets and SBI Capital Markets.
IPO portion across categories
Qualified institutional buyers will receive half of the issue size, retail investors will receive 35 per cent, and non-institutional investors will receive the remaining 15 per cent.
Company offerings
One of India's leading producers of chemicals based on ethanol is Godavari Biorefineries, situated in Maharashtra. The company's varied product line includes power, sugar, various ethanol grades, and bio-based chemicals. Food, beverages, pharmaceuticals, flavours and fragrances, power, fuel, personal care, and cosmetics are just a few of the industries that use these products.
