IPO: Godavari Biorefineries Submits Draft Papers With SEBI For Maiden Offer

Godavari Biorefineries Ltd submitted the draft papers for its maiden initial public offering (IPO) with the Securities and Exchange Board of India (SEBI). The firm, involved in manufacturing of ethanol-based chemicals, sought approval from the regulator for the fresh listing and filed a draft red herring prospectus (DRHP) to capitalise funds via the offering.

The firm’s maiden offer comprised a fresh issue of Rs 325 crore and an offer-for-sale (OFS) of up to 6.53 million shares by the existing shareholders and promoters, reported Moneycontrol. The OFS comprises of up to 4.93 million shares being sold by Mandala Capital AG, up to 5 lakh shares by Somaiya Agencies, around 2 lakh shares being offered by Samir Shantilal Somaiya and Lakshmiwadi Mines and Minerals each, around 3 lakh shares being sold by Filmedia Communication Systems, and up to 1 lakh shares being offered by Somaiya Properties and Investments.

The funds raised from the issue would be utilised to repay debt worth Rs 240 crore. Around March 2024, the overall debt of the firm stood at Rs 686 crore. The IPO is being managed by Equirus Capital Private Limited and SBI Capital Markets Limited as the book running lead managers.

The company deals with a diverse range of bio-based chemicals, ethanol, sugar, and power, and is involved in serving industries such as food, pharmaceuticals, fragrances, beverages, fuel, personal care, and cosmetics, among others. 

The company stood as the one of the largest ethanol producers in the country, as of March end 2024, with a capacity of 570 KLPD. The clients of the firm include Hindustan Coca-Cola, LANXESS India, Hershey India, IFF Inc, and other major oil firms. The firm has also expanded its footprint overseas and currently serves customers in more than 20 countries, such as the USA, the UK, China, Japan, and Germany.

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