IPO Alert: Godavari Biorefineries Limited Filed DRHP with SEBI

Ethanol-based chemical manufacturer Godavari Biorefineries Limited has filed the draft red herring prospectus (DRHP) to raise money via the initial public offering (IPO). Godavari Biorefineries IPO is a mix of fresh issue and the offer for sale (OFS). The company is seeking to raise ₹325 crore via fresh issue, and the offer for sale portion will comprise 65.26,983 equity shares.

Godavari Biorefineries has appointed Equirus Capital Private Limited and SBI Capital Markets Limited as book runner lead managers, while Link Intime India Private Limited has been appointed as registrar to the issue.

Purpose of Godavari Biorefineries IPO

Fresh Issue

The company will use the fresh issue proceeds for the following:

• Repayment/pre-payment, in full or in part, of certain outstanding borrowings availed by our Company.
• General corporate purposes.

Offer for Sale

The company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will be entitled to the proceeds from the sale of their respective portion of the Offered Shares in the Offer for Sale.

About Godavari Biorefineries Limited

Incorporated in 2006, Godavari Biorefineries Limited is one of the prominent manufacturers of ethanol-based chemicals in India. The company’s diversified product portfolio comprises bio-based chemicals, sugar, and different grades of ethanol and power. These products find application in a range of industries, such as food, beverages, pharmaceuticals, flavours & fragrances, power, fuel, personal care and cosmetics.

The company currently have two manufacturing facilities, with one manufacturing facility located in the Bagalkot district in Karnataka (Sameerwadi Manufacturing Facility) and another manufacturing facility located in the Ahmednagar district in Maharashtra (the “Sakarwadi Manufacturing 186 Facility)

As of March 31, 2024, the company’s Sameerwadi Manufacturing Facility operated with a crushing capacity of 18,000 TCD. The company’s sugar mill is among the top 15 sugar complexes in India in terms of crushing capacity. The company also have an environmental clearance to expand crushing capacity up to 25,000 185 TCD. Looking forward, the company is seeking to implement additional measures to improve feedstock security and increase the value derived from the feedstock.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.