Godavari Biorefineries IPO

Godavri Biorefineries, an ethanol producer, submitted its DRHP to SEBI on September 24, 2021. A fresh issuance of Rs. 370 crores and an offer to sell up to 65,58,278 equity shares are included in this issue. Samir Shantilal Somaiya and Somaiya Agencies are selling 5 lakh equity shares each in the offer for sale, while Mandala Capital is selling 49.27 lakh equity shares, Filmedia Communication Systems is selling 3 lakh equity shares, Somaiya Properties and Investments is selling around 1.31 lakh equity shares, and Lakshmiwadi Mines and Minerals is selling 2 lakh equity shares.

The corporation is considering placing 100 crore rupees' worth of pre-IPO shares. This will result in a reduction in the number of new issues. JM Financial Ltd. and Equirus Capital Private Ltd. are the book-running lead managers for the offering.

Opening Date

To be announced

Closing Date

To be announced

Price Band

To be announced

Issue Size

To be announced

Face Value

To be announced

Market Lot

To be announced

Opening Date

To be announced

Closing Date

To be announced

Price Band

To be announced

Issue Size

To be announced

Face Value

To be announced

Market Lot

To be announced

Listing at NSE, BSE

Godavari Biorefineries IPO Important Dates

IPO Open Date To be announced
IPO Close Date To be announced
Allotment Date To be announced
Initiation Of Refunds To be announced
Credit Of Shares To
Demat Account
To be announced
IPO Listing Date To be announced
UPI Mandate Expiry Date To be announced

View all upcoming IPOs

About Godavari Biorefineries

The largest integrated bio-refinery in the nation and the largest producer of ethanol in India are both owned by Godavari Biorefineries. Additionally, the business is one of only two producers of natural 1, 3-butylene glycol in the whole world. They are also the fourth-largest ethyl acetate producer in the nation. Godavari, which is a member of the Somaiya group of businesses, has been active in the sugar sector for the last 8 decades and has 6 decades of expertise there.

The business has two production plants, one each in Maharashtra and Karnataka. Reputable companies like Cipla, Biocon, Dr Reddy's labs, Hershey India Pvt Ltd, and others are among the company's clients. Twenty nations, including Australia, China, France, Germany, Italy, Japan, Kenya, the Netherlands, Nigeria, Singapore, Switzerland, the United Kingdom, United Arab Emirates, and the United States, are among its consumers. The firm has 41 international registrations and 13 patents for items and processes, according to the DRHP.

Godavari Biorefineries IPO Objectives

- Repayment/pre-payment, in full or in part, of certain borrowings availed by the Company.
- Funding capital expenditure for expansion of sugarcane crushing capacity at Sameerwadi Manufacturing Facility (“Sugarcane Crushing Expansion”).
- Funding capital expenditure for establishing a potash manufacturing unit at the Sameerwadi Manufacturing Facility (“Potash Unit”).
- General corporate purposes.

Why should you invest in the Godavari Biorefineries IPO?

  • With over 200 national laboratories and 1,300 research and development (R&D) centres which provide a strong base to become innovation-oriented, India has been increasing its export of chemical products in recent years, so growth will also be a factor of buoyant exports.
  • The Indian government recognises the chemical industry as a key growth element and forecasts to increase the share of the chemical sector to ~25% of the GDP in the manufacturing sector by 2025.
  • A 2034 vision for the chemicals and petrochemicals sector has been set up by the government to explore opportunities to improve domestic production, reduce imports and attract investments in the sector.

Financial Highlights

Particulars FY21 FY20 FY19
Revenue from operations 1,538.17 1,459.15 1,552.23
Revenue from ethanol (%) 21.28% 16.83% 11.94%
Revenue from bio-based chemicals (%) 34.96% 31.22% 39.26%
PAT 27.15 4.06 5.53
EBITDA 165.83 116.98 146.16
EPS (In Rs) 6.47 1 1.46
Total Assets 1,441.7 1,434.5 846.11
Total Borrowings 563.38 604.12 800.90
Equity Share Capital 41.95 41.95 38.38

How to apply for Godavari Biorefineries IPO?

Retail investors need to apply for the IPO using UPI.

UPI

  • Link your bank account to a UPI ID.
  • Register your UPI id with your Demat account.
  • Subscribe for Godavari Biorefineries IPO and approve the payment on your UPI ID.

Demat Account

Godavari Biorefineries Noteworthy Highlights:

  • Godavari Biorefineries have the largest integrated bio-refinery in India and are one of the largest producers of ethanol and a pioneer in manufacturing ethanol-based chemicals in India (source: Frost & Sullivan Report).
  • They are also the largest manufacturer of MPO worldwide, one of only two manufacturers of natural 1,3 butylene glycol globally, the fourth largest manufacturer of ethyl acetate in India and the only company in India to produce bio ethyl acetate (source: Frost & Sullivan Report).
  • According to the Frost & Sullivan Report, Godavari Biorefineries is the only company in India to have such a vast portfolio of biobased products. We are a part of the Somaiya group of companies, which has an experience of over 80 years in the sugar industry and almost 60 years of experience in the bio-based chemicals industry.

The Brand’s Pros & Cons:

Pros Cons
Godavari Biorefineries, the largest producer of ethanol in India, with a capacity utilisation rate of 58.87 per cent for the first quarter that concluded on June 30, 2021, with an installed capacity of 380 KLPD. The majority of the raw materials used by the business are sourced from only a few sources. Failure to get the raw materials will significantly impact the operations and company.
They are a fully integrated refinery that produces a variety of goods, including sugar, chemicals, ethanol, and other goods, using sugarcane as a key feedstock. They are reportedly the only business in India with such a broad range of items. A small number of items account for a sizable portion of the company's income, and their failure will have a negative impact on both the business operations and finances.
Strong in-house research, with 38 researchers working there as of June 30, 2021, with 7 of them holding doctoral degrees. Sugarcane is the company's primary feedstock, making it vulnerable to seasonal changes, crop diseases, and insect assaults.
They are a member of the Somiaya organisation and employ highly skilled promoters. The inability to sell new items that are introduced after extensive research and development will have a negative effect on the business's capacity to expand.

Competitive Analysis: Market Peers

Key companies in the ethanol market

Company Distillery capacity (KLPD) Cane Crushing capacity (TCD)
Shree Renuka Sugars Ltd 970 94,520
Bajaj Hindustan Sugar 800 96,000
Balrampur Chini Mills 520 76,500
India Glycols 425 5,500
Godavari Biorefineries Ltd 400 15,000
Dhampur Sugar Mills Ltd 400 45,500
Triveni Engineering & Industries 320 61,000
E.I.D Parry India 234 45,800
Dalmia Bharat Sugar 220 22,500
Simbhaoli Sugars 210 9,500
Avadh Sugar and energy 200 31,200
Mawana Sugars 120 29,500
HPCL Biofuels Ltd 60 3,500
Dwarikesh Sugar Industries 30 21,500

Key companies in the ethanol market

Companies Revenue (In Rs cr)
Bajaj Hindustan Sugar 6,672
Shree Renuka Sugars Ltd 5,462
Balrampur Chini Mills 4,812
Triveni Engineering & Industries 4,703
Dhampur Sugar Mills Ltd 4,232
Avadh Sugar and energy 2,711
Dalmia Bharat Sugar 2,686
E.I.D Parry India 2,024
Dwarikesh Sugar Industries 1,839
Uttam Sugar Mills Ltd 1,819
Bannari Amman Sugars Ltd 1,561
Godavari Biorefineries 1,538
Mawana Sugars Ltd 1,469
Ugar Sugar Works Ltd 1,118

Godavari Biorefineries IPO FAQs

What is Godavari Biorefineries' Initial Public Offering?

Ethanol producer, Godavari Biorefineries, filed its DRHP with SEBI on 24th September, 2021. The issue comprises a fresh issue worth Rs.370 crore and an offer for sale of up to 65,58,278 equity shares.

When will allotments for the Godavari Biorefineries IPO become available?

Godavari Biorefineries IPO will finalize the allotment by <>.

What will the IPO lot size for Godavari Biorefineries be?

Each Godavari Biorefineries IPO lot has <> shares.

When will Godavari Biorefineries IPO be available to buy?

The IPO of Godavari Biorefineries will be open for subscription from <>.

What is Godavari Biorefineries’ smallest lot size available to retail investors?

The minimum market lot size for the Godavari Biorefineries IPO is <> shares.

Which exchanges will Godavari Biorefineries list on?

Godavari Biorefineries shares will be listed on both BSE as well as the National Stock Exchange (NSE).

What is the IPO size of Godavari Biorefineries?

The IPO size of Godavari Biorefineries is Rs <> crore.

How to check the allotment status of Godavari Biorefineries IPO on the Angelone App?

A: The easiest ways to check your IPO allotment status on the Angelone app are below:
Step 1
Login & Look for Investment Opportunities via Angelone App.
Step 2
Choose IPOs & FPOs.
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Click Order Book.

How will I get my Godavari Biorefineries stock?

Following allotment, the Godavari Biorefineries shares will be credited to the Demat account.

Can I use one PAN to submit multiple applications for the public issue of Godavari Biorefineries?

No, you cannot use the same PAN to make multiple applications for this Godavari Biorefineries IPO or any other public offering.

Is it necessary to give immediate approval to a UPI mandate request?

Yes, immediately approving a UPI mandate request is preferable. Accepting it as soon as you receive it is much better.

Who is the Godavari Biorefineries CEO?

Mr Samir Somaiya is the CEO of Godavari Biorefineries.

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