Godavari Biorefineries Limited IPO

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IPO date To be announced
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Godavari Biorefineries Limited plans to launch a public offering and has submitted the DHRP.

What does Godavari Biorefineries Limited do?

Incorporated in Mumbai, Maharashtra in 1956 as Godavari Investment and Finance Corporation Limited, the company underwent a name change to Godavari Biorefineries Limited in 2006. The integration of The Godavari Sugar Mills Limited’s sugar, power, chemical, and distillery business into the company occurred in 2009. With a diverse product portfolio comprising bio-based chemicals, sugar, rectified spirits, ethanol, and power, the company serves various industries, including agrochemicals, cosmetics, pharmaceuticals, and beverages. Its global presence extends to over 20 countries, contributing to a notable portion of consolidated revenues.

The company’s commitment to research and development is evident through its numerous patented products and collaborations with reputable entities. Operating two manufacturing facilities, one each in the Bagalkot district of Karnataka and the Ahmednagar district of Maharashtra, the company has solidified its position in the bio-refinery sector.

What is the issue size of Godavari Biorefineries Limited IPO?

The entire public offer of Godavari Biorefineries Limited consists of a fresh issue of equity shares aggregating up to ₹370 crores and an offer for sale of up to 6,558,278 equity shares from existing shareholders including Samir Shantilal Somaiya, Somaiya Agencies Private Limited, Mandala Capital AG Limited, Filmedia Communication Systems Private Limited, Somaiya Properties and Investments Private Limited, and Lakshmiwadi Mines and Minerals Private Limited, among others.

Financials of Godavari Biorefineries Limited IPO (₹ crores)

Financial Year Total Assets Total income Profit After Tax EBITDA EPS
March 31, 2019 1641.75 1,566.33 5.53 146.16 1.46
March 31, 2020 1434.49 1,472.80 4.06 116.98 1
March 31, 2021 1441.70 1,546.38 27.16 165.83 6.47

Risk factors to consider:

Dependency on Sugarcane, Molasses, and Feedstock: The manufacturing operations in the sugar, distillery, and cogeneration segments rely heavily on the availability of sugarcane, molasses, and feedstock. Shortages in these materials due to seasonal vagaries, adverse weather conditions, crop disease, or pest attacks could adversely affect operations and results.

Supplier Dependency for Raw Materials: Procurement of raw materials, excluding sugarcane, depends on a few suppliers. Any failure to procure these materials from the designated suppliers could disrupt manufacturing operations and impact results.

Dependency on Government Policies for Ethanol Sales: A significant portion of revenue from ethanol sales relies on the ethanol-blended petrol program initiated by the Government of India. Any adverse changes in government policies regarding this program could negatively affect revenue and financial condition.

How to apply to the Godavari Biorefineries Limited IPO?

You can apply for the Godavari Biorefineries Limited IPO using any supported UPI app by following two steps:

  • Enter your bid on Kite
  • Accept the UPI mandate on your phone

On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.

How to check the allotment status for the Godavari Biorefineries Limited IPO?

You can check the allotment status for the Godavari Biorefineries Limited IPO on the website of the Registrar and Transfer agent.