IPO Dates
Important dates with respect to IPO allotment and listing
IPO Open Date
To be announced
About Company
The largest integrated bio-refinery in the nation and the largest producer of ethanol in India are both owned by Godavari Biorefineries. Additionally, the business is one of only two producers of natural 1, 3-butylene glycol in the whole world. They are also the fourth-largest ethyl acetate producer in the nation. Godavari, which is a member of the Somaiya group of businesses, has been active in the sugar sector for the last 8 decades and has 6 decades of expertise there.
The business has two production plants, one each in Maharashtra and Karnataka. Reputable companies like Cipla, Biocon, Dr Reddy's labs, Hershey India Pvt Ltd, and others are among the company's clients. Twenty nations, including Australia, China, France, Germany, Italy, Japan, Kenya, the Netherlands, Nigeria, Singapore, Switzerland, the United Kingdom, United Arab Emirates, and the United States, are among its consumers. The firm has 41 international registrations and 13 patents for items and processes, according to the DRHP.
Godavari Biorefineries IPO Objectives
- Repayment/pre-payment, in full or in part, of certain borrowings availed by the Company.
- Funding capital expenditure for expansion of sugarcane crushing capacity at Sameerwadi Manufacturing Facility (“Sugarcane Crushing Expansion”).
- Funding capital expenditure for establishing a potash manufacturing unit at the Sameerwadi Manufacturing Facility (“Potash Unit”).
- General corporate purposes.
Why should you invest in the Godavari Biorefineries IPO?
- With over 200 national laboratories and 1,300 research and development (R&D) centres which provide a strong base to become innovation-oriented, India has been increasing its export of chemical products in recent years, so growth will also be a factor of buoyant exports.
- The Indian government recognises the chemical industry as a key growth element and forecasts to increase the share of the chemical sector to ~25% of the GDP in the manufacturing sector by 2025.
- A 2034 vision for the chemicals and petrochemicals sector has been set up by the government to explore opportunities to improve domestic production, reduce imports and attract investments in the sector.
Godavri Biorefineries, an ethanol producer, submitted its DRHP to SEBI on September 24, 2021. A fresh issuance of Rs. 370 crores and an offer to sell up to 65,58,278 equity shares are included in this issue. Samir Shantilal Somaiya and Somaiya Agencies are selling 5 lakh equity shares each in the offer for sale, while Mandala Capital is selling 49.27 lakh equity shares, Filmedia Communication Systems is selling 3 lakh equity shares, Somaiya Properties and Investments is selling around 1.31 lakh equity shares, and Lakshmiwadi Mines and Minerals is selling 2 lakh equity shares.
The corporation is considering placing 100 crore rupees' worth of pre-IPO shares. This will result in a reduction in the number of new issues. JM Financial Ltd. and Equirus Capital Private Ltd. are the book-running lead managers for the offering.
IPO Financials
| Particulars | FY21 | FY20 | FY19 |
|---|---|---|---|
| Revenue from operations | 1,538.17 | 1,459.15 | 1,552.23 |
| Revenue from ethanol (%) | 21.28% | 16.83% | 11.94% |
| Revenue from bio-based chemicals (%) | 34.96% | 31.22% | 39.26% |
| PAT | 27.15 | 4.06 | 5.53 |
| EBITDA | 165.83 | 116.98 | 146.16 |
| EPS (In Rs) | 6.47 | 1 | 1.46 |
| Total Assets | 1,441.7 | 1,434.5 | 846.11 |
| Total Borrowings | 563.38 | 604.12 | 800.90 |
| Equity Share Capital | 41.95 | 41.95 | 38.38 |
Know before investing
Strengths
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Godavari Biorefineries, the largest producer of ethanol in India, with a capacity utilisation rate of 58.87 per cent for the first quarter that concluded on June 30, 2021, with an installed capacity of 380 KLPD.
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They are a fully integrated refinery that produces a variety of goods, including sugar, chemicals, ethanol, and other goods, using sugarcane as a key feedstock. They are reportedly the only business in India with such a broad range of items.
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Strong in-house research, with 38 researchers working there as of June 30, 2021, with 7 of them holding doctoral degrees.
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They are a member of the Somiaya organisation and employ highly skilled promoters.
Risks
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The majority of the raw materials used by the business are sourced from only a few sources. Failure to get the raw materials will significantly impact the operations and company.
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A small number of items account for a sizable portion of the company's income, and their failure will have a negative impact on both the business operations and finances.
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Sugarcane is the company's primary feedstock, making it vulnerable to seasonal changes, crop diseases, and insect assaults.
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The inability to sell new items that are introduced after extensive research and development will have a negative effect on the business's capacity to expand.
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Peer Comparison
| Companies | Revenue (In Rs cr) |
|---|---|
| Bajaj Hindustan Sugar | 6,672 |
| Shree Renuka Sugars Ltd | 5,462 |
| Balrampur Chini Mills | 4,812 |
| Triveni Engineering & Industries | 4,703 |
| Dhampur Sugar Mills Ltd | 4,232 |
| Avadh Sugar and energy | 2,711 |
| Dalmia Bharat Sugar | 2,686 |
| E.I.D Parry India | 2,024 |
| Dwarikesh Sugar Industries | 1,839 |
| Uttam Sugar Mills Ltd | 1,819 |
| Bannari Amman Sugars Ltd | 1,561 |
| Godavari Biorefineries | 1,538 |
| Mawana Sugars Ltd | 1,469 |
| Ugar Sugar Works Ltd | 1,118 |
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