The IPO will close on October 25 and the anchor offering will begin on October 22. Allotment will close on October 28 and share redemptions and credits will take place on October 29, followed by share pricing on October 30.
The IPO includes a fresh issue worth Rs 325 crore and an offer for sale (OFS) of up to 6.53 million shares by existing shareholders and promoters. Private equity firm Mandala Capital AG will exit the company and sell its entire stake of 49,26,983 shares in OFS.
Mandala’s average acquisition cost is Rs 188.91 per share, making it the biggest seller on the OFS, along with promoters Somaiya Agencies, Samir Shantilal Somaiya, Lakshmiwadi Mines and Minerals, Filmmedia Communication Systems and Somaiya Properties .
The proceeds from the new issue will be used to repay Rs 240 crore of debt and the rest will be used for general corporate purposes. As of June 2024, Godavari Biorefineries had consolidated debt of Rs 748.9 crore.
The company is one of India’s largest ethanol producers by volume, with a biorefinery capacity of 570 KLPD for ethanol production. Its diverse portfolio includes bio-based chemicals, sugar, ethanol and energy, serving industries such as food, beverages, pharmaceuticals, personal care and fuels. In line with government initiatives to boost ethanol blending, Godavari plans to expand its distillery capacity from 600 KLPD to 1,000 KLPD. Godavari Biorefineries supplies products to leading companies such as Hershey India, Hindustan Coca-Cola Beverages and LANXESS India, among others. Financially, the company has faced challenges. Its profits fell to 12.3 million rupees for the year ending March 2024, from 19.6 million rupees a year earlier, while revenue fell to 1,686.7 million rupees from 2,014.7 million. rupees. For the June 2024 quarter, the company posted a loss of Rs 26.1 crore on revenue of Rs 522.5 crore.
The IPO is managed by Equirus Capital and SBI Capital Markets, with Link Intime India as the registrar.
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