Godavari Biorefineries Ltd has set a price band of ₹334-352 per share for its ₹555 crore initial public offering (IPO), which opens on October 23. The IPO consists of a fresh issue worth ₹325 crore and an offer-for-sale (OFS) of 6.53 million shares by existing shareholders and promoters.
The anchor bidding will begin on October 22, and the IPO will close on October 25. The basis of allotment is scheduled for October 28, with refunds and crediting of equity shares to demat accounts on October 29. The stock is expected to list on exchanges on October 30.
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Mandala Capital AG, a private equity firm, will exit Godavari Biorefineries by selling its entire stake of 49,26,983 shares in the OFS. These shares were acquired at an average cost of ₹188.91 per share, making Mandala the largest seller in the OFS, followed by other promoters.
Other sellers in the OFS include Somaiya Agencies, Samir Shantilal Somaiya, Lakshmiwadi Mines and Minerals, Filmedia Communication Systems, and Somaiya Properties. The company plans to use ₹240 crore from the fresh issue to repay debt, with the remaining funds allocated for general corporate purposes.
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As of June 2024, Godavari Biorefineries had a consolidated debt of ₹748.9 crore. The company is one of India’s largest ethanol producers, with a bio-refinery capacity of 570 KLPD for ethanol production, and offers a wide portfolio of bio-based chemicals, sugar, and power products.
In response to government initiatives promoting fuel ethanol blending, Godavari Biorefineries plans to expand its distillery capacity from 600 KLPD to 1,000 KLPD. The company’s products serve various industries, including food, beverages, pharmaceuticals, and personal care.
Important Dates for Godavari Biorefineries IPO
– Anchor Bidding Start Date: October 22, 2024
– IPO Subscription Opens: October 23, 2024
– IPO Subscription Closes: October 25, 2024
– Basis of Allotment Finalisation: October 28, 2024
– Refunds and Credit of Shares: October 29, 2024
– Stock Listing on Exchanges: October 30, 2024