Godavari Biorefineries IPO

About Godavari Biorefineries IPO

Godavari Biorefineries IPO valued at ₹554.75 crore, comprising a fresh issue of 0.92 crore shares, raising ₹325 crore, and an offer for sale of 0.65 crore shares, worth ₹229.75 crore. The IPO will open for subscription from October 23, 2024, to October 25, 2024, with the allotment expected to be finalised by October 28, 2024. Godavari Biorefineries aims to list on both BSE and NSE, with the tentative listing date set for October 30, 2024.

The price band for the IPO is set between ₹334 to ₹352 per share, and retail investors can apply for a minimum lot size of 42 shares, requiring a minimum investment of ₹14,784. For sNII, the minimum application is 14 lots (588 shares), amounting to ₹2,06,976, while bNII investors need to apply for 68 lots (2,856 shares), amounting to ₹1,005,312.

Equirus Capital Private Limited and SBI Capital Markets Limited are serving as the lead managers for the issue, while Link Intime India Private Ltd has been appointed as the registrar for the Godavari Biorefineries IPO.

Industry Outlook

1. The Indian chemical industry, currently valued at $220 billion, is projected to reach $300 billion by 2025 and $1 trillion by 2040. This growth is driven by robust economic development and increased domestic consumption, which benefits Godavari Biorefineries by providing a strong market for bio-based chemicals.
2. India’s chemical exports rose from $33 billion in 2015 to $57 billion in 2021, growing at a CAGR of 8.2%. As a key player in the bio-based chemical sector, Godavari Biorefineries can capitalise on India's expanding export opportunities, particularly in organic and green chemical segments.
3. India’s abundant biomass feedstock makes it an attractive market for bio-based chemicals, a sector where Godavari Biorefineries is well-positioned due to its expertise in using sugarcane for ethanol production. 

Godavari IPO Objectives 

The company plans to allocate the net proceeds from the issuance to the following purposes:

1. The funds will be used to repay or pre-pay its outstanding borrowings, reducing its financial liabilities.
2. The remaining funds will be allocated towards general corporate purposes.

About Godavari Biorefineries Limited 

Godavari Biorefineries Limited (GBL) stands as a prominent player in India’s bio-refinery space. With an installed ethanol manufacturing capacity of 570 KLPD as of June 2024, GBL is among the largest ethanol producers in India. The company is also a major producer of MPO and bio-ethyl acetate and operates the first bio-based EVE manufacturing facility in the country. 

Using sugarcane as a primary feedstock, GBL produces a diversified range of bio-based chemicals, ethanol, sugar, and power, catering to industries such as food, pharmaceuticals, and personal care. GBL was one of the first companies in India to use sugarcane juice and syrup to produce ethanol, and the company continues to explore innovative uses for sugarcane. Its portfolio includes chemicals like ethyl acetate, bio-acetic acid, butanol, and 1,3 butylene glycol, all of which are derived from sugarcane. GBL is also exploring grain-based ethanol production to expand its offerings further.

The company operates two manufacturing facilities—one in Sameerwadi, Karnataka, and another in Sakarwadi, Maharashtra. The Sameerwadi facility focuses on ethanol, sugar, and power, while the Sakarwadi facility is dedicated to bio-based chemical production. 

GBL's commitment to sustainability is evident through its efficient use of by-products. It utilises spent wash from distillery operations to generate steam and minimise waste. Its efforts have earned the company various accolades, including awards from the Indian Chemical Council and the Indian Federation of Green Energy for outstanding renewable energy generation.

The company has made significant investments in research and development, with three R&D facilities across India and 52 dedicated research staff. The company has an extensive client base that includes industry leaders such as Hershey India, Hindustan Coca-Cola Beverages, and LANXESS India. 

GBL has also expanded its reach globally, catering to clients in over 20 countries, including Australia, China, Germany, and the U.S. The company's revenues from international operations contributed significantly to its overall revenue, with notable growth in its Jivana-branded products like sugar and jaggery.

Godavari Biorefineries Limited continues to focus on sustainability and innovation while expanding its manufacturing capacities and product portfolio. Through its integrated bio-refinery model, the company is poised to capitalise on India’s growing demand for ethanol and bio-based chemicals.

Peer Details

According to RHP, The following are the listed peers of Godavari Biorefineries Limited:

1. Alkyl Amines Chemicals Limited
2. Jubilant Ingrevia Limited
3. Laxmi Organic Industries Limited
4. EID Parry (India) Limited
5. Triveni Engineering and Industries Limited
6. Balrampur Chini Mills Limited
7. Dalmia Bharat Sugar & Industries Limited
8. Dhampur Sugar Mills Limited
9. Dwarikesh Sugar Industries Limited

How To Check the Allotment Status of the Godavari Biorefineries IPO?

A: Steps to check IPO allotment status on Angel One’s app:

1. Log in to the Angel One app.
2. Go to the IPO Section and then to IPO Orders.
3. Select the individual IPO that you had applied for and check the allotment status.
4. Angel One will notify you of your IPO allotment status via push notification and email.

How to apply for Godavari Biorefineries IPO online?

1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
3. Select IPO: Find and select the Godavari Biorefineries IPO from the list of open IPOs.
4. Enter the Lot Size: Specify the number of lots you want to bid for.
5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

Contact Details of Godavari IPO

Registered office: Somaiya Bhavan, 45/47, M.G. Road, Fort, Mumbai - 400 001, Maharashtra, India

Phone: +91 22 61702177

E-mail:  investors@somaiya.com