Godavari Biorefineries IPO: Should You Invest? Key Details, Market Trends, and Expert Advice

Godavari Biorefineries Limited’s IPO opened for bidding on October 23, 2024, and will close on October 25, 2024. The company, known for producing ethanol-based chemicals, has set the IPO price between ₹334 and ₹352 per share. The total aim is to raise ₹554.75 crore, with ₹325 crore coming from fresh shares. The company plans to list on both BSE and NSE. On the first day of bidding, the IPO received 0.27 times the subscription.

Currently, the grey market sentiment for Godavari Biorefineries IPO is neutral, with no premium being offered.

Grey Market Premium (GMP)

As of now, the GMP for Godavari Biorefineries IPO is zero. This means the shares are trading at the same price in the grey market as their issue price. The neutral grey market sentiment could be due to weak overall market conditions.

Subscription Status

By the end of day one, the IPO was subscribed 0.27 times, with the retail segment receiving 0.48 times the subscription, and the Non-Institutional Investor (NII) portion receiving 0.12 times.

Expert Opinions

Prathamesh Masdekar, Research Analyst at StoxBox, recommends subscribing to the IPO. He highlighted the company’s strong presence in the ethanol-based chemicals sector and its diversified product portfolio. He also mentioned that the growing Indian ethanol market offers excellent opportunities for Godavari. Despite the high price-to-earnings (P/E) ratio of 120.1x for FY24, he believes the company’s long-term growth potential makes it a worthwhile investment.

Mahesh M Ojha, AVP — Research at Hensex Securities, also suggests subscribing to the IPO. He pointed out Godavari’s established customer base, its strong R&D capabilities, and its presence in the Maharashtra-Karnataka region. The company is well-positioned to benefit from rising ethanol demand, and the IPO proceeds will help reduce debt by ₹240 crore, improving its balance sheet. Based on these factors, he recommends the IPO for medium- to long-term investors.

Important Dates

• IPO Allotment Date: Likely on October 26, 2024 (or Monday, October 28, 2024, if delayed)
• IPO Listing Date: Expected on October 30, 2024

Investors looking for growth in the ethanol industry and long-term potential may want to consider this IPO based on expert recommendations.