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Godavari Biorefineries Limited is launching its Mainboard IPO, aiming to raise approximately ₹554.75 crores through a book-built issue. The company, established in 1956, is a leading producer of ethanol-based chemicals in India. Its biorefinery currently has an ethanol production capacity of 570 KLPD as of June 2024.
The IPO consists of a fresh issue of 9,232,955 shares worth ₹325 crores and an Offer for Sale (OFS) of 6,526,983 shares. The price band for each share ranges between ₹334 to ₹352, and the issue will be open for subscription from October 23 to October 25, 2024.
Company Highlights
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Products: Godavari Biorefineries specializes in ethanol-based chemicals, bio-based chemicals, sugar, and power. It serves various industries, including pharmaceuticals, personal care, food and beverages, and more.
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Global Presence: The company operates in over 20 countries, including Australia, China, and Germany.
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R&D Facilities: It has three R&D units located in Maharashtra and Karnataka, registered with the Department of Scientific and Industrial Research (DSIR).
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Clientele: Some notable clients include LANXESS India, Hershey India, Hindustan Coca-Cola Beverages, and Escorts Chemical Industries.
Financial Snapshot
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Total Revenue: ₹525.27 crores as of June 30, 2024.
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PAT (Profit After Tax): -₹26.11 crores in Q1 FY24, down from ₹12.30 crores in FY23.
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Net Worth: ₹233.84 crores as of June 2024.
IPO Listing
The shares will be listed on both BSE and NSE, with the listing date set for October 30, 2024.
Investment Consideration
While the Godavari Biorefineries IPO offers a diversified product portfolio and a strong presence in renewable energy, the P/E ratio of 93.12x may indicate a higher valuation compared to industry peers. Investors should consider the dependency on sugarcane and its impact on the company’s revenue before making any investment decisions.
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