Godavari Biorefineries IPO opens today: Key details, GMP, & brokerage views

Godavari Biorefineries IPO is available at a price band of Rs 334-352, and a lot size of 42 shares. Accordingly, the investors can bid for a minimum of 42 shares and multiples thereof

The initial public offering (IPO) of Godavari Biorefineries opens for public subscription today. With the public issue, Godavari Biorefineries seeks to raise Rs 554.75 crore by offering a fresh issue of 9,232,955 shares, and an offer for sale of 6,526,983 shares, each with a face value of Rs 10.

Godavari Biorefineries has announced that it has already raised Rs 166.42 crore from anchor investors on bidding concluded on October 22, 2024.

Godavari Biorefineries IPO is available at a price band of Rs 334-352, and a lot size of 42 shares. Accordingly, investors can bid for a minimum of 42 shares of Godavari Biorefineries IPO and in multiples thereof. The minimum amount of investment required by retail investors to bid for Godavari Biorefineries IPO is Rs 14,784. The minimum lot size investment for sNII is 14 lots or 588 shares, aggregating to Rs 206,976, and for bNII, it is 68 lots or 2,856 shares, aggregating to Rs 1,005,312.

That said, the unlisted shares of Godavari Biorefineries are trading flat in the grey markets ahead of their opening on Wednesday.

The three-day subscription window to bid for the Godavari Biorefineries IPO will conclude on Friday, October 25, 2024. Following the closure of the IPO subscription, the basis of allotment of Godavari Biorefineries shares is likely to be finalised on Monday, October 28, 2024. The company's shares will subsequently be credited into the demat account on Tuesday, October 29, 2024. Godavari Biorefineries shares will make their debut on the bourses on Wednesday, October 30, 2024, with listing at BSE and NSE.

Godavari Biorefineries seeks to utilise the net proceeds from the public issue for the repayment/pre-payment, in full or in part, of certain outstanding borrowings availed by the company as well as for general corporate purposes. 

Should you subscribe to the Godavari Biorefineries IPO?

Swastika Investmart - Neutral

Analysts at Swastika Investmart have assigned a neutral rating to the Godavari Biorefineries IPO, citing that the company is facing financial challenges and is burdened with significant debt. The IPO appears to be highly priced to the analysts.

"While the company may benefit from the liberalised ethanol production norms, the current IPO valuation is not recommended," said the analysts and continued, "Investors who believe in the company's long-term prospects and are willing to accept the risks associated with the high debt and recent financial challenges may consider applying with caution."

About Godavari Biorefineries 

Godavari Biorefineries is a leading manufacturer of ethanol-based chemicals in India, operating the country's largest integrated bio-refinery. The company produces a diverse range of bio-based products, including sugar, ethanol, and chemicals, using sugarcane as feedstock. With a strong focus on sustainability, Godavari Biorefineries minimises waste and promotes eco-friendly practices throughout its operations. Its products cater to various industries, including food, pharmaceuticals, personal care, and fuel, with exports to over 20 countries worldwide.