Godavari Biorefineries IPO
| IPO date | To be announced |
| Listing date | – |
| Type | – |
| Price range | – |
| Minimum order quantity | – | (D)RHP | View |
Godavari Biorefineries plans to launch a public offering and has submitted the DHRP. 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.
| Funds Raised in the IPO | Amount |
| Overall | To be announced |
| Fresh Issue | ₹370 crores |
| Offer for sale | To be announced |
Financials Snapshot
| 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 |
*All figures except EPS are in ₹ Crores
Risk factors
- 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.