Godavari Biorefineries Limited is a leading manufacturer of bio-based chemicals in India. The company is engaged in the production of various bio-based products, including ethanol, acetic acid, and other specialty chemicals.
Key Details:
- Issue Type: Main Board IPO
- Issue Size: ₹554.75 crores
- Fresh Issue: ₹554.75 Cr
- Offer for Sale:₹325.00 Cr
- Price Band: ₹334 – ₹352 per share
- Lot Size:42 Shares
- Issue Open Date: October 23, 2024
- Issue Close Date: October 25, 2024
- Listing Date: October 30, 2024
- Lead Managers: Equirus Capital Private Limited and SBI Capital Markets Limited
Timeline
About Company
Godavari Biorefineries Limited is a leading manufacturer of bio-based chemicals in India. The company operates an integrated biorefinery with a capacity of 570 KLPD for ethanol production.
Core Business:
- Bio-based Chemicals: Godavari Biorefineries produces a wide range of bio-based chemicals, including ethanol, acetic acid, ethyl acetate, and other specialty chemicals.
- Sugar: The company also produces sugar as a byproduct of its ethanol production process.
- Power: Godavari Biorefineries generates power from its sugar mills and ethanol plants.
Market Position:
- Godavari Biorefineries is one of the largest producers of ethanol and a pioneer in manufacturing ethanol-based chemicals in India.
- The company has a strong market presence and a diverse customer base, serving industries such as agrochemicals, cosmetics, and pharmaceuticals.
Future Outlook:
- The company may also invest in research and development to develop innovative bio-based products.
- The Indian bio-based chemicals market is expected to grow, driven by increasing demand for sustainable and renewable products.
- Godavari Biorefineries aims to expand its product portfolio and explore new market opportunities.
Objective
The primary objectives of the Godavari Biorefineries Limited IPO are:
- Raising Capital: The company aims to raise ₹554.75 crores through the IPO, which will be used for:
- Debt Repayment: Funding the repayment or pre-payment of certain outstanding borrowings availed by the company.
- General Corporate Purposes: Supporting other growth initiatives and strategic investments.
- Brand Visibility: The IPO will increase the visibility of Godavari Biorefineries among investors and the general public, enhancing its brand recognition and credibility.
- Part Exit for Existing Shareholders: The IPO includes an Offer for Sale (OFS) component, allowing existing shareholders to partially exit their investment.
By achieving these objectives, Godavari Biorefineries Limited aims to strengthen its financial position, reduce its debt burden, and expand its business operations.
Would you like to know more about the company’s financials or the IPO process?
POSITIVE
- Market Leader: Godavari Biorefineries is a leading manufacturer of bio-based chemicals in India.
- Diverse Product Portfolio: The company offers a wide range of products, including ethanol, acetic acid, and other specialty chemicals.
- Growth Potential: The Indian bio-based chemicals market is expected to grow, driven by increasing demand for sustainable products.
NEGATIVE
- Raw Material Costs: Fluctuations in the prices of raw materials can impact profitability.
- Regulatory Changes: Changes in government policies related to renewable energy or biofuels can affect the industry.
- Competition: The bio-based chemicals market is competitive, with both domestic and international players.
Financial Review of Godavari Biorefineries
So, How Does Godavari Biorefineries IPO Fare in Terms of Financials ?
| Period Ended | 30 Jun 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 1,554.62 | 1,991.66 | 1,743.52 | 1,733.54 |
| Revenue | 525.27 | 1,701.06 | 2,023.08 | 1,709.98 |
| Profit After Tax | -26.11 | 12.30 | 19.64 | 19.10 |
| Net Worth | 233.84 | 260.25 | 249.01 | 232.57 |
| Reserves and Surplus | 432.34 | 458.74 | 447.51 | 431.06 |
| Total Borrowing | 703.75 | 663.27 | 738.01 | 636.72 |
| Amount in ₹ Crore | ||||
Key Observations:
- Revenue Growth: The company has experienced significant revenue growth, particularly from Q1 2024 to Q2 2024, indicating strong market penetration and project execution.
- Profitability: Profit after tax (PAT) has declined in Q2 2024 compared to Q1 2024, suggesting potential challenges in cost management or pricing.
- Asset Growth: Assets have declined slightly from Q1 2024 to Q2 2024, which could be due to various factors such as asset sales or completion of projects.
- Net Worth and Reserves: A healthy increase in net worth and reserves suggests a strong financial position.
- Debt: Total borrowing has increased, indicating a reliance on debt financing.
Godavari Biorefineries IPO Valuation :
| KPI | Values |
|---|---|
| ROE | 8.48% |
| ROCE | 8.97% |
| Debt/Equity | 0.91 |
| RoNW | 9.57% |
| P/BV | 4.68 |
| PAT Margin (%) | 13.52 |
SWOT Analysis: Godavari Biorefineries IPO
Strengths
- Market Leader: Godavari Biorefineries is a leading manufacturer of bio-based chemicals in India.
- Diverse Product Portfolio: The company offers a wide range of products, including ethanol, acetic acid, and other specialty chemicals.
- Integrated Operations: Godavari Biorefineries has an integrated biorefinery, allowing for efficient production and utilization of byproduct
Weaknesses
- Raw Material Costs: Fluctuations in the prices of raw materials, such as sugarcane, can impact profitability.
- Regulatory Changes: Changes in government policies related to renewable energy or biofuels can affect the industry.
- Competition: The bio-based chemicals market is competitive, with both domestic and international players.
Opportunities
- Growing Market: The Indian bio-based chemicals market is expected to grow, driven by increasing demand for sustainable products.
- Product Diversification: Expanding into new bio-based products or markets.
- Export Markets: Exploring opportunities to export products to international markets.
Threats
- Economic Downturns: A slowdown in the economy can impact demand for bio-based chemicals.
- Technological Advancements: New technologies or alternative production methods could impact the company’s competitive advantage.
- Government Policies: Changes in government policies or subsidies related to renewable energy or biofuels can affect the industry.
COMPETITIVE ANALYSIS: MARKET PEERS
Godavari Biorefineries Limited operates in a competitive market for bio-based chemicals in India. Understanding its key competitors is essential for assessing the company’s market position and growth potential.
Key Competitors
- Bio-ethanol Producers: Other leading producers of ethanol in India, such as Indian Sugar and Chemicals Limited (ISCL), Uttar Pradesh Sugar Corporation Limited (UPSL), and Balrampur Chini Mills Limited.
- Biofuel Producers:Companies involved in the production of other biofuels, such as biodiesel and biogas.
- Chemical Manufacturers: Large chemical companies with a presence in the bio-based chemicals market, such as BASF SE and Dow Chemical Company.
Godavari Biorefineries IPO GMP
- Grey market premium as on 25-10-2024 = ₹5 /Share
Disclaimer:
- IPO Grey Market Premium (Godavari Biorefineries IPO GMP) mention is valid for the specific date as mentioned in the header.
- We are not buying and selling IPO forms on IPO Grey Market.
- Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.
Godavari Biorefineries IPO
🔴 Live Subscription Status 🔴
25/10/2024 5:00 PM
| | NO OF SHARES OFFERED | Day 1 | Day 2 | Day 3 |
| Qualified Institutional Buyers(QIBs) | 31,45,977 | 0.00 | 0.00 | 2.76 |
| Non Institutional Investors(NIIs) | 24,38,629 | 0.12 | 0.26 | 0.90 |
| Retail Individual Investors(RIIs) | 56,90,133 | 0.48 | 0.95 | 1.71 |
| Total | 1,12,74,739 | 0.27 | 0.54 | 1.83 |
FINAL TAKEAWAY
✅ May Apply
HOW APPLY IPO USING DEMAT , UPI, ASBA, NET BANKING ETC ?
How to apply IPO using Bhim UPI app or any UPI app?
How to apply IPO Using KOTAK Bank (ASBA)?
Apply IPO using Upstox mobile app.
How to apply IPO using Bhim UPI app in Upstox?
These are simple and effective steps that increase your IPO allotment chances. Check our page on how to improve IPO allotment chances.
Happy investing!🤩
