Godavari Biorefineries Ltd IPO Details, Date, Lot size, Financial Information full details

Godavari Biorefineries Ltd IPO Details, Date, Lot size,  Financial Information full details

Godavari Biorefineries Ltd IPO Details: Godavari Biorefineries Ltd is a leading bio-based chemicals and ethanol manufacturer, primarily operating as an integrated biorefinery. Founded in 1956, the company produces a range of products including bio-based chemicals, sugar, ethanol, and power. Its ethanol production capacity as of mid-2024 was 570 KLPD, making it one of India’s largest ethanol producers. Additionally, Godavari Biorefineries is a global leader in the production of bio-based chemicals like MPO (Methyl Pentanediol), and is the only producer of bioethyl acetate in India. The company serves diverse industries such as pharmaceuticals, food and beverages, cosmetics, and more, with customers in over 20 countries.

Full details of Godavari Biorefineries Ltd's IPO:

IPO Details:

• IPO Date: October 23, 2024 – October 25, 2024.
• Price Band: ₹334 – ₹352 per share.
• Total IPO Size: ₹554.75 crore.
  • Fresh Issue: ₹325 crore.
  • Offer for Sale (OFS): 65.27 lakh shares worth ₹229.75 crore.
• Face Value: ₹10 per share.
• Lot Size: 42 shares.
  • Minimum Investment: ₹14,784 (for 1 lot).
  • Maximum Investment: ₹1,92,192 (13 lots).
• Retail Allocation: 35%.
• Listing Exchanges: BSE and NSE.

Financial Information (Past 3 Years):

1. FY 2022:

   • Revenue: ₹1,702.33 crore.
   • Net Profit: ₹19.10 crore.
   • Net Margin: 1.12%.

2. FY 2023:

   • Revenue: ₹2,014.69 crore.
   • Net Profit: ₹19.64 crore.
   • Net Margin: 0.97%.

3. FY 2024:

• Revenue: ₹1,686.67 crore.
• Net Profit: ₹12.30 crore.
• Net Margin: 0.73%.

Purpose of the IPO:

• Debt Repayment: A significant portion (₹240 crore) of the fresh issue will go towards reducing the company’s debt.
• General Corporate Purposes: The remaining funds will be used to meet general corporate expenses.

Godavari Biorefineries Ltd. is one of the largest biorefinery companies in India, specializing in sustainable products derived from agricultural resources. Here's a detailed overview:

1. Core Business Operations:

• Ethanol Production: Godavari is a major producer of ethanol in India, contributing significantly to the biofuel industry. Ethanol is used in blending with petrol, supporting the country's efforts to move towards greener fuels.
• Bio-based Chemicals: The company produces a wide range of chemicals, such as ethyl acetate and methyl crotonate, which are used in industries like food and beverages, pharmaceuticals, cosmetics, and personal care.
• Sugar Production: Sugarcane serves as the feedstock for their ethanol and bio-chemical production. Godavari is also a key player in the sugar industry.
• Renewable Energy: The company generates electricity using biomass from their sugar and ethanol production processes​ ​Godavari Biorefineries.

2. Global Leadership:

Godavari is recognized globally for certain products:

• It is one of the world’s largest producers of methyl crotonate and one of the only two global producers of 1,3 butylene glycol, a key ingredient used in cosmetics​Godavari Biorefineries.
• They are also the fourth largest producer of ethyl acetate in India​Godavari Biorefineries.

3. Sustainability and Innovation:

• The company emphasizes sustainability in its operations, utilizing agricultural biomass to produce renewable energy and eco-friendly chemicals.
• Their focus on research and development has led to innovations in bio-refining technology, ensuring they remain a leader in environmentally sustainable industries​.

In summary, Godavari Biorefineries Ltd. is a significant player in the production of ethanol, bio-based chemicals, and renewable energy, with a strong focus on sustainability and innovation. The company plays a vital role in supporting industries both in India and globally.

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Business Overview:

Godavari Biorefineries Ltd is one of India’s largest ethanol producers and a leader in the bio-based chemicals sector. The company produces a wide range of products, including ethanol, bio-based chemicals, sugar, and renewable energy. Their products serve industries like pharmaceuticals, cosmetics, food and beverages, fragrances, and fuel.

Godavari is also the only producer of bioethyl acetate in India and one of the world's top producers of methyl crotonate and 1,3 butylene glycol​.

The IPO offers investors a chance to invest in a rapidly growing biofuels and green energy market, with the company focusing on reducing its debt and expanding its production capacity.