New Delhi : Godavari Biorefineries Ltd, a manufacturer of ethanol and bio-based chemicals, announced a price range of Rs 334-352 per share for its Rs 555-crore IPO, which is set to open for subscription on October 23. The company announced that the initial public offering will finish on October 25 and the bidding for anchor investors will start for one day on October 22. The planned IPO consists of a mix of new equity shares amounting to Rs 325 crore and an Offer for Sale (OFS) of 65.27 lakh equity shares valued at Rs 230 crore, at the higher end of the price range, by promoters and an investor. This means the IPO is valued at a total of Rs 555 crore.
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Mandala Capital AG Ltd, a private equity firm, is selling 49.27 lakh shares through the Offer for Sale (OFS) process. The Rs 240 crore raised from the new shares will go towards repaying debts, with the rest designated for general corporate uses. The upper limit of the price range values the company's market capitalization at Rs 1,800 crore. Fifty percent of the total shares have been set aside for qualified institutional buyers, 35 percent for retail investors, and the remaining 15 percent for non-institutional investors.
Godavari Biorefineries, located in Maharashtra, is a leading producer of ethanol-based chemicals in India. The company has a varied range of products including bio-based chemicals, sugar, various types of ethanol, and power in its portfolio. These products are utilized in various industries including food, beverages, pharmaceuticals, flavors & fragrances, power, fuel, personal care, and cosmetics. The bio-based chemicals market has been experiencing significant growth as a result of the rising demand for eco-friendly solutions, as reported by Frost & Sullivan. The bio-based chemicals market reached a value of USD 97.2 billion in 2023 and is projected to expand further.
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