Godavari Biorefineries IPO is going to open for subscription on 23rd October, at present Godavari Biorefineries IPO GMP trading at 0 rupees per share. IPO price band is set between 334-352 rupees.
Godavari Biorefineries founded in 1956, takes sugarcane and turns it into essential products like ethanol, sugar, and renewable energy. With a strong focus on sustainability, they’re helping drive India’s biofuel and clean energy future.
Godavari Biorefineries IPO Financials
Godavari Biorefineries is now gearing up for an IPO, aiming to raise ₹555 crore. Here’s how that breaks down:
- Fresh Issue: ₹325 crore, which will be used to pay down debt and fuel future growth in the booming biofuels and renewable energy sector.
- Offer for Sale (OFS): While exact figures are yet to be announced, a portion will come from existing shareholders, including the promoters.
| Details | Information |
|---|---|
| Price Band | ₹334 – ₹352 |
| Minimum Lot Size | 42 shares |
| Minimum Investment | ₹14,784 |
| Total Issue Size | ₹554 crore |
| Fresh Issue | ₹370 crore |
| Retail Investors | 35% |
| Qualified Institutional Buyers (QIBs) | 50% |
| Non-Institutional Investors (NIIs) | 15% |
Godavari Biorefineries IPO Dates
| Event | Date |
|---|---|
| IPO Open Date | 23 October 2024 |
| IPO Close Date | 25 October 2024 |
| Allotment Date | 30 October 2024 |
| Refund Initiation Date | 31 October 2024 |
| Demat Account Credit Date | 1 November 2024 |
| Listing Date | 3 November 2024 |
Godavari Biorefineries IPO GMP
The Grey Market Premium (GMP) is trading at zero.
Godavari Biorefineries IPO DRHP
Godavari Biorefineries Ltd
Godawari Biorefineries, founded back in 1956, is one of India’s pioneers in integrated biorefineries. What makes them unique is their ability to take a simple, everyday crop like sugarcane and transform it into a range of sustainable products that touch many aspects of daily life. From producing ethanol to fuel our cars to crafting chemicals for pharmaceuticals and cosmetics, Godavari Biorefineries has a significant impact on the biofuels and renewable energy industries.
With India’s strong push towards renewable energy, especially ethanol blending in fuel to reduce carbon emissions, Godavari Biorefineries has positioned itself as a key player. It’s not just about sugar anymore; it’s about building a future that’s cleaner and greener.
Key Products & Segments:
- Biofuels: Ethanol and renewable energy, essential for reducing fossil fuel use.
- Chemicals: Ethanol-based chemicals are used in everything from medicines to cosmetics.
- Sugar: The company still produces white, refined sugar, an essential in many homes.
- Power: Using the byproducts of sugar production, they generate renewable energy, contributing both to their operations and to the energy grid.
Their holistic approach makes them a fascinating example of a company fully committed to a circular economy making sure nothing from the sugarcane goes to waste.
Company Operating Model:
Godavari Biorefineries operates under a fascinating model of sustainability, transforming sugarcane into multiple products. Their integrated approach allows them to produce ethanol, chemicals, power, and sugar with minimal waste—an excellent example of how a circular economy should work.
- Ethanol Production: As one of the country’s top producers, they play a crucial role in India’s ethanol blending program, helping to reduce the country’s carbon footprint.
- Power Generation: They generate renewable energy using bagasse (the fibrous residue from sugar production), powering their own operations and selling excess energy to the grid.
- Chemicals: Their ethanol-based chemicals serve vital industries like pharmaceuticals, personal care, and cosmetics, supporting both everyday essentials and luxury products.
Godavari Biorefineries Financial Performance
Like many companies, Godavari Biorefineries has faced ups and downs in recent years. In FY2023, the company brought in ₹2,014.69 crore in total revenue but saw that dip by 16% to ₹1,686.67 crore in FY2024. Likewise, net profit dropped from ₹19.64 crore to ₹12.30 crore over the same period. The decrease is largely due to rising raw material costs and market fluctuations in sugar prices.
| Details | FY 2023 | FY 2024 |
|---|---|---|
| Total Revenue (₹ Crore) | 2,014.69 | 1,686.67 |
| Net Profit (₹ Crore) | 19.64 | 12.30 |
| EBITDA Margin | 12.5% | 11.7% |
| Debt (₹ Crore) | 890 | 805 |
Financials have taken a hit, the company’s vision and strategic positioning in the renewable energy and biofuels sectors give it long-term growth potential.
Promoters’ Holdings:
The Somaiya family, with decades of experience in the sugar and biofuel industry, holds the majority of shares pre-IPO. However, after the IPO and the Offer for Sale, their holdings will reduce from 60% to an estimated 47%, giving the public greater access to shares and helping meet the required public shareholding norms.
Godavari Biorefineries Top FAQs
- What is the Godavari biorefineries IPO date?
The IPO opens on October 23, 2024, and closes on October 25, 2024. - What’s the Godavari Biorefineries ipo GMP for the IPO?
The Grey Market Premium is zero at present. - Is Godavari Biorefineries profitable?
Yes, although profits have been declining, with FY2024 net profit at ₹12.30 crore compared to ₹19.64 crore in FY2023. - How do I apply for the Godavari Biorefineries IPO?
You can apply through ASBA via your bank’s net banking portal or on broker platforms like Zerodha, Upstox, and others. - What’s their business model?
The company runs an integrated biorefinery using sugarcane to produce ethanol, chemicals, power, and sugar, following a circular economy approach. - What’s the Godavari Biorefineries ipo GMP trend? – Its Neutral.