Godavari Biorefineries Ltd IPO

About Godavari Biorefineries Limited

Godavari Biorefineries Limited is recognised as India's largest integrated bio-refinery and a leading producer of ethanol. It is a pioneer in manufacturing ethanol-based chemicals, standing out as the largest global manufacturer of MPO and one of the only two producers of natural 1,3 butylene glycol worldwide.

Additionally, it is the fourth-largest ethyl acetate producer in India and the only company in India to produce bio-ethyl acetate. The company’s diverse portfolio includes bio-based chemicals, sugar, rectified spirits, ethanol, various alcohol grades, and power, catering to industries such as agrochemicals, cosmetics, flavors and fragrances, food, fuel, paints, coatings, and pharmaceuticals.

Part of the Somaiya group, which has extensive experience in the sugar and bio-based chemicals industries, Godavari Biorefineries utilises sugarcane to produce a wide range of products. It was among the first in India to use sugarcane juice and syrup for ethanol production.

The Sameerwadi Manufacturing Facility ranks among India's top ten sugar complexes, with significant ethanol production capacity. The company aims to expand its ethanol production capacity from 380 KLPD to 570 KLPD (Kilo Liters Per Day), with plans to manufacture 2nd generation ethanol and energy cane to enhance feedstock availability for its distillery segment.

The chemicals produced include ethanol-based substances like ethyl acetate, bio-ethyl acetate, MPO, 1,3 butylene glycol, crotonaldehyde, acetaldehyde, acetic acid, bio-acetic acid, and paraldehyde. These chemicals serve various industries, including agrochemicals, cosmetics, food, fuel, and pharmaceuticals. The ethanol produced is sold to oil marketing companies and used in beverages, pharmaceuticals, and chemicals.

Godavari Biorefineries emphasises R&D, holding 13 patents and 41 registrations globally. It operates three R&D facilities registered with the Department of Scientific and Industrial Research, Government of India. The company collaborates with various institutions for advancements, including cancer treatment research. For instance, it has entered into an MoU with Dr. Sendurai Mani for developing small molecule inhibitors for cancer. The R&D team, comprising 38 research scientists, focuses on identifying and developing new products.

With a strong global presence, Godavari Biorefineries exports to over 20 countries, including Australia, China, France, Germany, Italy, Japan, Kenya, Netherlands, Nigeria, Singapore, Switzerland, the UK, the UAE, and the USA. It maintains offices in the Netherlands and the USA, enabling better international demand assessment and customer outreach.

The company operates two manufacturing facilities in Karnataka and Maharashtra. The Sameerwadi Manufacturing Facility is dedicated to producing rectified spirits and ethanol, sugar, and power. The Sakarwadi Manufacturing Facility focuses on bio-based chemicals.

Godavari Biorefineries implements sustainable practices, purchasing sugarcane from farmers who adopt sustainable methods and minimising waste in its operations. It has received several awards, including the "Water Resource Management in Chemical Industry" Award from the Indian Chemical Council and the "Outstanding Renewable Energy Generation-Biofuel" award from the Indian Federation of Green Energy.

Industry Outlook:

1. The Indian government aims to increase the chemical sector's share of the manufacturing GDP to 25% by 2025, providing Godavari Biorefineries Limited with a conducive environment for expansion and innovation.
2. Specialty chemicals in India are projected to grow at a CAGR of 11-12% over the next five years, driven by demand from pharmaceuticals, personal health, hygiene, and agrochemicals.

Godavari Biorefineries Limited IPO Objectives

The company plans to allocate the net proceeds from the issuance to the following purposes:

1. Allocate ₹2,140 million for repaying or pre-paying certain company borrowings to reduce financial liabilities.
2. Invest ₹448.44 million to expand the sugarcane crushing capacity at the Sameerwadi Manufacturing Facility, enhancing production capabilities.
3. Utilise ₹106.20 million to establish a potash manufacturing unit at the Sameerwadi facility, diversifying product offerings and increasing revenue potential.
4. Allocate remaining funds towards general corporate purposes to support overall business growth and operational efficiency.

Peer Details

According to DRHP, there are no listed companies in India that operate in a business similar to Godavari Biorefineries Limited.

How to Check the Allotment Status of the Godavari Biorefineries Limited IPO?

Steps to check IPO allotment status on Angel One’s app:

• Log in to the Angel One app
• Go to the individual order details page of the IPO that you had applied for.
• Check the IPO allotment status. As such, Angel One will notify you of your IPO allotment status via push notification, email, and SMS.

Contact Details of Godavari Biorefineries Limited IPO

• Registered office: Somaiya Bhavan, 45/47, M.G. Road, Fort, Mumbai - 400 001, Maharashtra
• Phone: +91 22 6170 2100
• E-mail:investors@somaiya.com