New Delhi: Godavari Biorefineries Ltd, a manufacturer of ethanol and bio-based chemicals, announced on Tuesday that it has received more than Rs 166 crore from anchor investors, one day prior to the start of its initial public offering for public subscription. HDFC Mutual Fund, Whiteoak Capital Fund, Goldman Sachs (Singapore) Pte Ltd, Societe General and SBI General Insurance were among the prominent investors in the anchor book, as stated in a circular on the BSE website.
According to a recent circular, Godavari Biorefineries distributed 47.28 lakh equity shares to 19 funds at a price of Rs 352 each, which is the maximum price of the IPO. This results in a transaction size amounting to Rs 166.42 crore.
New IPO Set to Raise Rs 555 Crore
Out of the entire allotment of 47.28 lakh equity shares to anchor investors, six domestic mutual funds across 10 schemes were assigned 23.74 lakh shares, representing 50.22 percent of the total. The IPO will open for subscription at a price range of Rs 334 to Rs 352 per share from October 23 to October 25. The planned IPO includes a Rs 325 crore fresh equity share issue and a Rs 230 crore Offer-for-Sale (OFS) of 65.27 lakh equity shares at the top price range by promoters and an investor. This equates to a total IPO value of Rs 555 crore.
Mandala Capital AG Ltd, a private equity firm, is selling 49.27 lakh shares via the OFS method. The funds raised from the new offering totaling Rs 240 crore will be allocated towards repaying debts, with the rest used for general corporate objectives.
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The upper limit of the price band has set the company's market valuation at Rs 1,800 crore. These items are used in various sectors like food, drinks, medicine, scents, energy, fuel, beauty products, and makeup. As per a Frost & Sullivan Report, the bio-based chemicals market has been rapidly expanding due to the rising demand for environmentally friendly solutions. In 2023, the bio-based chemicals market was worth USD 97.2 billion and is projected to expand at a CAGR of 10.4 percent from 2023 to 2028. SBI Capital Markets and Equirus Capital Markets are serving as the lead managers for the public issue.
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