Godavari Biorefineries IPO: The initial public offering (IPO) of Godavari Biorefineries Limited opened for bidding on October 23, 2024. The public issue will be open till October 25, 2024. The ethanol-based chemicals manufacturing company has fixed Godavari Biorefineries IPO price band at ₹334 more ₹352 per share. The book building number combines a new number and an offer for sale (OFS). The company aims to raise ₹554.75 crore from Godavari Biorefineries IPO, of which ₹325 crore is targeted through issue of new shares. The initial offer is proposed for listing on BSE and NSE. According to Godavari Biorefineries IPO Subscription Statusthe public issue has received a tepid response from the Indian primary market investors in the first two days of bidding.

Meanwhile, shares of Godavari Biorefineries Limited have become available in the gray market. According to the stock market observers, company shares are available at a premium of ₹15 on the gray market.

Godavari Biorefineries IPO GMP

As mentioned above is Godavari Biorefineries IPO GMP (Grey Market Premium) today is ₹15, which means that the gray market expects a listing gain of ₹15 per share. The gray market was neutral on book building on the Godavari Biorefineries IPO subscription date.

At the latest at 16:10 on the third day of the subscription on Friday, the issue had been subscribed 1.80 times. The retail portion had been subscribed 1.65 times and the NII segment had at that time been booked 0.90 times. The segment reserved for QIBs was subscribed 2.76 times.

After two days of bidding, the book-build issue had been subscribed 0.54 times, the retail portion of the public issue had been subscribed 0.96 times and the NII segment of the public offer had been subscribed 0.26 times.

Godavari Biorefineries IPO review

Prathamesh Masdekar, research analyst at StoxBox, gave a ‘subscribe’ tag to Godavari Biorefineries’ IPO: “Godavari Biorefineries is a leading ethanol-based chemicals producer in India that operates an integrated biorefinery. Its diverse product portfolio includes bio-based chemicals, sugar, ethanol and power, serving food, pharmaceutical, personal care and fuel sectors The company is leveraging strong customer relationships in sugar and bio-chemicals to cross-sell products while constantly exploring new diversification opportunities with the Indian ethanol market growing from USD 7.0 billion in 2023 to USD 17.5 billion in 2028 at a CAGR at 20%, Godavari is well positioned to capitalize on this, particularly in fuel additives, disinfectants and beverages.”

“Financially, the company is aiming to reduce its gearing, enabling future growth. Godavari’s long-term outlook is solid, supported by strong business performance, operational efficiency and R&D initiatives. Despite the high P/E ratio of 120.1x for FY24, the company’s growth potential and industry tailwinds make it a promising investment, justifying a SUBSCRIBE rating, the StoxBox expert added.

Mahesh M Ojha, AVP — Research at Hensex Securities, assigned an ‘apply’ tag to the public issue, “Godavari offers a diversified product portfolio with a well-established relationship with a diversified marquee customer base across industries and geographies. Additionally, it has well-developed internal research and development opportunities The company is a leading producer in the Maharashtra Karnataka belt and will benefit from the increasing demand for ethanol ₹SEK 240 million from the IPO, which strengthens its balance sheet. Considering the above mentioned factor, we assign ‘SUBSCRIBE’ to the medium to long term investment issue.”

Godavari Biorefineries IPO Information

The most probable date for Godavari Biorefineries IPO is 26 October 2024 i.e. this Saturday. If the share allotment is not declared this Saturday, the likely date for the Godavari Biorefineries IPO allotment would be Monday next week. Likewise, the most likely date for Godavari Biorefineries’ IPO is October 30, 2024.

Disclaimer: The views and recommendations above are those of individual analysts, experts and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.