Godavari Biorefineries IPO lists 12.5% below issue price

IPO debut struggles arsenic banal lists beneath contented price; here’s what you request to know  

Godavari Biorefineries made its marketplace debut connected October 30, 2024, listing astatine a twelve-point-five percent discount implicit the contented price. Here are 5 cardinal insights from the IPO listing and the company’s marketplace strategy.

Godavari Biorefineries’ shares opened astatine Rs 308 connected the NSE and Rs 310.55 connected the BSE, falling from the contented terms of Rs 352. This weaker debut reflects capitalist caution arsenic broader marketplace sentiment stays mixed.

The Rs 554.75 crore nationalist offering was unfastened for subscription from October 23 to October 25, closing with coagulated interest. Overall, the IPO was subscribed 1.76 times, receiving bids for 2.06 crore shares against the 1.10 crore shares connected offer. The retail conception was subscribed 1.76 times, portion qualified organization buyers (QIBs) showed stronger involvement with a 2.76 times subscription. However, the non-institutional capitalist (NII) class had a lukewarm response, with a 0.93 times subscription.

The offering consisted of a caller contented of 0.92 crore shares, amounting to Rs 325 crore, and an connection for merchantability (OFS) of 0.65 crore shares worthy Rs 229.75 crore. On October 22, 2024, the institution besides raised Rs 166.42 crore from anchor investors, securing aboriginal involvement successful the IPO. 

Proceeds from the caller contented are chiefly earmarked for indebtedness repayment oregon prepayment and wide firm purposes, giving the institution a strategical fiscal boost arsenic it seeks to little leverage and absorption connected expansion.

Founded successful 1956, Godavari Biorefineries is simply a cardinal subordinate successful bio-based chemicals, sugar, ethanol, and power, supplying industries specified arsenic nutrient and beverages, pharmaceuticals, and cosmetics. The institution holds 18 patents and exports to implicit 20 countries. Its biorefinery successful Maharashtra has a 570 KLPD ethanol accumulation capacity, and it is recognized globally arsenic the starring MPO shaper by capacity. For FY24, Godavari saw a gross diminution of fifteen-point-nine-two percent, portion its nett aft taxation (PAT) fell by thirty-seven-point-three-seven percent.

With this listing, Godavari Biorefineries aims to leverage its divers merchandise portfolio and innovative capabilities to grow its marketplace scope and operational efficiencies.