Godavari Biorefineries Limited is launching an IPO to issue 92,32,955 shares for INR 325 crores and sell 65,26,983 shares worth INR 229.75 crores. The company aims to repay the outstanding borrowings and also use the funds for general corporate purposes.
Godavari Biorefineries Limited IPO – Important Dates
| Godavari Biorefineries Limited IPO Date | October 23, 2024 to October 25, 2024 |
| Godavari Biorefineries Limited IPO Listing Date | October 30, 2024 |
| Godavari Biorefineries Limited IPO Price | INR 334-352 per share |
| Godavari Biorefineries Limited IPO Lot Size | 42 shares |
| Godavari Biorefineries Limited IPO Total Issue Size | INR 554.75 crores |
| Godavari Biorefineries Limited IPO Basis of Allotment | October 28, 2024 |
| Godavari Biorefineries Limited IPO Initiation of Refunds | October 29, 2024 |
| Godavari Biorefineries Limited IPO Credit of Shares to Demat | October 29, 2024 |
| Godavari Biorefineries Limited IPO Issue Type | Book Built Issue IPO |
| Godavari Biorefineries Limited IPO Listing At | BSE NSE |
Read more about Godavari Biorefineries Limited IPO
Godavari Biorefineries Limited IPO – Company Profile
The company is one of the manufacturers of ethanol-based chemicals in India and is an integrated bio-refinery in India with an installed capacity of 570 KLPD for manufacturing ethanol as of June 30, 2024. The company is one of India’s largest producers of ethanol in terms of volume as of March 31, 2024.
The company is also the largest manufacturer of MPO worldwide in terms of installed capacity, one of only two manufacturers of natural 1,3 butylene glycol, and the only company in India to manufacture bio ethyl acetate.
The diversified product portfolio comprises of bio-based chemicals, sugar, different grades of ethanol, and power. These products find application in a range of industries such as food, beverages, pharmaceuticals, flavors & fragrances, power, fuel, personal care, and cosmetics.
Godavari Biorefineries Ltd IPO Fundamental Analysis
Godavari Biorefineries’ revenue dropped by 16% in FY2024, with losses reported in FY2025 due to rising expenses and declining profitability. Equity and NAV decreased, and the debt-equity ratio worsened, signaling increased financial risk and weakening financial health.
1. Revenue Performance
The revenue for FY2024 dropped by 16% compared to FY2023, signaling a slowdown in business activity. However, the first three months of FY2025 have shown a reasonable start with over 30% of FY2024’s revenue already earned.
2. Expense Management
While expenses in FY2024 decreased slightly, the expense level in the first quarter of FY2025 is significant and has already surpassed the revenue, leading to a loss. This points to cost inefficiencies or high operational expenses.
3. Profitability
The company’s profitability has been declining, with a substantial loss reported in the first quarter of FY2025. This is a concerning sign for investors, especially if losses continue.
The diluted EPS has followed a downward trajectory, reflecting the company’s declining profitability. The negative EPS for FY2025 further signals financial stress.
4. Equity and NAV Growth
Equity slightly increased in FY2024 but decreased in FY2025, possibly due to losses impacting shareholders’ equity.
The NAV per share shows a decline in the first quarter of FY2025, reflecting the impact of losses on the company’s overall asset base.
5. Return on Net Worth (RONW)
While the company slightly improved its RONW in FY2024, the negative figure for FY2025 highlights a poor return on shareholders’ equity, driven by ongoing losses.
6. Financial Health
Both assets and liabilities decreased in FY2025, with assets declining faster. The company’s financial position appears to be weakening, possibly due to lower revenue and increasing operational challenges.
The debt-equity ratio worsened in FY2025, indicating that the company’s financial leverage has increased. This adds financial risk, particularly when combined with profitability challenges.
Godavari Biorefineries IPO Financial Analysis
| Particular | As of 31 March 2023 | As of 31 March 2024 | As of 30 June 2024 (3 months) |
| Revenue (₹ in million) | 20,146.94 | 16,866.65 | 5,225.25 |
| Equity (₹ in million) | 4,894.48 | 5,006.80 | 4,742.78 |
| Expenses (₹ in million) | 19,913.29 | 16,886.18 | 5,669.09 |
| Profit and Loss After Tax (₹ in million) | 196.37 | 122.99 | (261.06) |
| Diluted EPS only (₹) | 4.68 | 2.93 | (6.22) |
| Return on Net Worth (%) | 7.89 | 8.21 | (11.16) |
| NAV per Equity Share (₹) | 59.37 | 62.05 | 55.75 |
| Total Assets (in millions) | 17,435.22 | 19,916.60 | 15,546.17 |
| Total Liabilities (in millions) | 12,540.74 | 14,909.80 | 10,803.39 |
| Debt- Equity Ratio (in times) | 2.96 | 2.55 | 3.01 |
Godavari Biorefineries Limited IPO Peer Comparison
Godavari Biorefineries has the lowest RoNW at 4.73%, while EID Parry leads with the highest revenue and EPS, showcasing strong profitability. Balrampur Chini excels in RoNW, and Alkyl Amines has the highest P/E ratio.
| Company | Revenue from operations (₹ in million) | Face Value per Equity Share (₹) | P/E Ratio | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (₹) |
| Godavari BiorefineriesLimited | 16,866.65 | 10 | NA | 2.93 | 2.93 | 4.73 | 62.05 |
| Alkyl AminesChemicals Limited | 14,406.10 | 2 | 78.84 | 29.13 | 29.09 | 11.75 | 247.87 |
| Jubilant IngreviaLimited | 41,358.00 | 1 | 64.10 | 11.56 | 11.55 | 6.68 | 171.86 |
| Laxmi OrganicIndustries Limited | 28,650.07 | 2 | 65.11 | 4.46 | 4.43 | 6.71 | 65.18 |
| EID Parry (India)Limited | 294,131.10 | 1 | 16.69 | 50.68 | 50.61 | 12.75 | 397.61 |
| Triveni Engineeringand Industries Limited | 61,514.00 | 1 | 26.06 | 18.05 | 18.05 | 13.62 | 132.52 |
| Balrampur Chini MillsLimited | 55,937.40 | 1 | 24.72 | 26.49 | 26.49 | 15.72 | 168.57 |
| Dalmia Bharat Sugar &Industries Limited | 28,993.70 | 2 | 15.83 | 33.66 | 33.66 | 9.29 | 362.27 |
| Dhampur Sugar MillsLimited | 26,468.30 | 10 | 11.20 | 20.27 | 20.27 | 12.21 | 168.28 |
| Dwarikesh SugarIndustries Limited | 17,095.70 | 1 | 17.30 | 4.44 | 4.44 | 10.16 | 43.66 |
Godavari Biorefineries Ltd IPO Objective
The main objective of Godavari Biorefineries is to utilize INR 240 crore from the Net Proceeds for repaying existing borrowings. The remaining funds will be allocated for general corporate purposes, including operational expenses, project development, and marketing efforts.
- To repay existing borrowings: The company proposes to utilise a portion of the Net Proceeds aggregating to INR 240 crore for full or partial repayment or prepayment of certain borrowings availed by the company.
- General corporate purpose: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses and initial development costs for various projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies in ordinary operations.
Godavari Biorefineries IPO Risks And Challenges
Godavari Biorefineries relies on a few key suppliers for raw materials, and any disruption could impact manufacturing operations. Seasonal fluctuations in the sugar, distillery, and cogeneration segments, along with changes in government policies related to ethanol sales, could negatively affect the business and revenue.
- The company is dependent on a few suppliers for a significant portion of the revenue from raw materials. Any failure to procure such raw materials from these suppliers may have an adverse impact on the manufacturing operations and results of operations.
- The sugar, distillery, and cogeneration segments are subject to seasonal vagaries which may have an adverse impact on the business, financial condition, and results of operations.
- The revenue from the sale of ethanol is dependent on the sales to oil marketing companies pursuant to the ethanol blended petrol program instituted by the Government of India. Any adverse change in the policies of the Government of India in this regard would have an adverse effect on the revenue.
Godavari Biorefineries Ltd IPO – Industry & Market Potential
The government has also set a vision for the chemicals and petrochemicals sector. By 2034, the aim is to bolster domestic production capabilities, reduce import dependence, and attract foreign investments. The government plans to introduce production-linked incentives with 10-20% output incentives for the agrochemical sector and foster end-to-end manufacturing ecosystems through cluster development.
Bio-acetic acid is in the emerging phase in India. The Indian market for bio-acetic acid stood at 437.0 MT in 2023 and is expected to grow at a CAGR of 8.0% from 2023 to 2024, reaching up to 642.3 MT by 2028.
Godavari Biorefineries Limited IPO – Type of Offer
Godavari Biorefineries Limited is launching an IPO with a fresh issue of 92,32,955 shares for INR 325 crores and an offer for sale of 65,26,983 shares worth INR 229.75 crores. The company plans to repay outstanding borrowings and utilize funds for general corporate purposes.
- Fresh Issue: The company plans to issue 92,32,955 new shares worth INR 325 crores. The proceeds will be utilised to set up a manufacturing facility in Odisha and for general corporate purposes.
- Offer for sale: The company is coming up with an offer to sell 65,26,983 existing shares. Along with the other shareholders, the below are the details of the promoter selling their existing shares:
| Name of the selling shareholder | Maximum number of offered shares for sale |
| Mandala Capital AG Limited | 49,26,983 |
| Somaiya Agencies Private Limited | 5,00,000 |
| Samir Shantilal Somaiya | 5,00,000 |
| Lakshmiwadi Mines and Minerals Private Limited | 2,00,000 |
| Filmedia Communication Systems Private Limited | 3,00,000 |
| Somaiya Properties and Investments Private Limited | 1,00,000 |
Godavari Biorefineries IPO Offer Size
The offer size for Godavari Biorefineries Limited’s IPO is INR 554.75 crores, comprising a fresh issue of 92,32,955 shares worth INR 325 crores and an offer for sale of 65,26,983 shares worth INR 229.75 crores. The funds will be used for repaying borrowings and general corporate purposes.
Godavari Biorefineries Limited IPO Allotment Structure
Godavari Biorefineries Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
Read more about Godavari Biorefineries Limited’s IPO Allotment Status
How to apply for the Godavari Biorefineries IPO?
To apply for the Godavari Biorefineries Limited IPO through Alice Blue, you would typically follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Godavari Biorefineries Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Godavari Biorefineries Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
Read more about Godavari Biorefineries Limited’s IPO Day 1 Subscription
How do you check Godavari Biorefineries Limited’s IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Godavari Biorefineries Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Godavari Biorefineries Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Godavari Biorefineries Limited IPO:
● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Godavari Biorefineries Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Read more about Godavari Biorefineries Limited’s IPO Day 2 Subscription
Godavari Biorefineries Limited Ltd IPO Offer Registrar
The registrar for the Godavari Biorefineries Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link Intime India Private Limited
C-101, 247 Park LBS Marg, Surya Nagar,
Gandhi Nagar Vikhroli (West) Mumbai – 400 083
E-mail: [email protected]
Website: www.linkintime.co.in
Godavari Biorefineries Limited Limited IPO – FAQs
1. What is Godavari Biorefineries Limited’s allotment date?
The allotment date of the Godavari Biorefineries Limited IPO is October 28, 2024.
2. What is the price band of the Godavari Biorefineries Limited IPO?
The price band for the issue is INR 334-352 per share.
3. What is the size of the Godavari Biorefineries Limited IPO?
The offer size for Godavari Biorefineries Limited’s IPO is INR 554.75 crores, comprising a fresh issue of 92,32,955 shares worth INR 325 crores and an offer for sale of 65,26,983 shares worth INR 229.75 crores. The funds will be used for repaying borrowings and general corporate purposes.
4. What is the listing date of the Godavari Biorefineries Limited IPO?
The listing date of Godavari Biorefineries Limited’s IPO is October 30, 2024.
