Godavari Biorefineries IPO: Chemicals Giant Raises ₹166 Crore from Anchor Investors Ahead of Launch—Check Date, Price Band, and Details

Godavari Biorefineries Ltd, a company that produces ethanol and bio-based chemicals, has secured over ₹166 crore from anchor investors just ahead of its Initial Public Offering (IPO). The public subscription for the IPO will open soon.

Among the key investors in this pre-IPO round are HDFC Mutual Fund, Whiteoak Capital Fund, Goldman Sachs (Singapore) Pte Ltd, Societe Generale, and SBI General Insurance. This information was shared in a circular on the BSE website.

According to the filing, Godavari Biorefineries allocated 47.28 lakh equity shares to 19 funds at a price of ₹352 per share, which is the highest point in the IPO price band. This generated a total of ₹166.42 crore. Out of these, 23.74 lakh shares (50.22% of the total) were given to six domestic mutual funds across 10 different schemes.

Godavari Biorefineries IPO Details

The IPO will be open for public subscription from October 23 to 25, with a price range set between ₹334 and ₹352 per share. The IPO includes both a fresh issue of equity shares worth ₹325 crore and an Offer-for-Sale (OFS) of 65.27 lakh shares valued at ₹230 crore, being sold by the company’s promoters and an investor. In total, the IPO is expected to raise ₹555 crore. A private equity firm, Mandala Capital AG Ltd, will be selling 49.27 lakh shares as part of the OFS.

Most of the money from the fresh issue will be used to pay off ₹240 crore in debt. The rest will be used for general corporate expenses.

At the highest price point, Godavari Biorefineries is valued at ₹1,800 crore. Half of the shares are reserved for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional investors.

About Godavari Biorefineries

Located in Maharashtra, Godavari Biorefineries is one of India’s top manufacturers of ethanol-based chemicals. The company’s products include bio-based chemicals, sugar, ethanol, and power, which are used in industries like food, beverages, pharmaceuticals, flavors and fragrances, power, fuel, personal care, and cosmetics.

A report from Frost & Sullivan shows that the market for bio-based chemicals is growing rapidly. In 2023, it was valued at USD 97.2 billion and is expected to grow at a rate of 10.4% per year from 2023 to 2028, driven by the demand for eco-friendly solutions.

SBI Capital Markets and Equirus Capital Markets are leading the management of this IPO.