Godavari Biorefineries Ltd IPO

Last Updated: 08 December 2022 5:43 PM by 5Paisa

IPO synopsis:
Ethanol producer, Godavri Biorefineries, filed its DRHP with SEBI on 24th September, 2021. The issue comprises of a fresh issue worth Rs.370 crore and an offer for sale of up to 65,58,278 equity shares. In the offer for sale, Samir Shantilal Somaiya and Somaiya Agencies are offloading 5 lakh equity shares each, Mandala Capital is offloading 49.27 lakh equity shares, 3 lakh equity shares are being offloaded by Filmedia Communication Systems, Somaiya Properties and Investments are offloading around 1.31 lakh equity shares and lastly, Lakshmiwadi Mines and Minerals are offloading 2 lakh equity shares.
A pre-IPO placement of shares worth Rs.100 crore is being considered by the company. This will lead to the decrease in the amount of fresh issue. The book running lead managers to the issue are JM Financial Ltd and Equirus Capital Private Ltd. 

Objectives of the issue:
1.    Rs.214 crore is to be kept aside to repay or prepay any debt availed by the company
2.    Rs.44.84 is to be used to fund the capital expenditure for sugarcane crushing expansion
3.    Rs.10.62 is to be used to fund the capital expenditure for the potash unit
 

Godavari Biorefineries has the largest integrated bio-refinery in the country and is also the largest ethanol producer in India. The company is also one of the only two manufacturers of natural 1, 3 butylene glycol globally. They are also the fourth largest manufacturer of ethyl acetate in the country. Godavari is a part of the Somaiya group of companies and has been operational in the sugar industry for the last 8 decades and a 6 decade experience in the bio-based chemicals industry.
The company has two manufacturing facilities, one in Karnataka and one in Maharashtra. The customers of the company include renowned players like Cipla, Biocon, Dr. Reddy’s laboratories, Hershey India Pvt Ltd etc. Their customers span across 20 countries including Australia, China, France, Germany, Itlay, Japan, Kenya, Netherlands, Nigeria, Singapore, Switzerland, UK, United Arab Emirates and USA. According to the DRHP, the company has patented 13 products and processes and 41 registrations across countries. 
 

Financials: