Godavari Biorefineries files draft papers with SEBI to raise funds via IPO

For FY24, its total revenue stood at Rs 1686.67 crore versus Rs 2014.69 crore a year ago. Net profit stood at Rs 12.30 crore against Rs 19.64 crore last year.

Godavari Biorefineries Ltd, one of India's prominent manufacturers of ethanol-based chemicals, has filed a draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) to raise funds via initial public offerings.

The IPO consists of a fresh issue of Rs 325 crore and an offer for sale of up to 6.53 million shares by its existing shareholders and promoters.

The OFS consists of up to 4.93 million shares by Mandala Capital AG, up to 5 lakh shares by Somaiya Agencies, up to 2 lakh shares by Samir Shantilal Somaiya, up to 2 lakh shares by Lakshmiwadi Mines and Minerals, up to 3 lakh shares by Filmedia Communication Systems and up to 1 lakh shares by Somaiya Properties and Investments.

The proceeds from the fresh issue will be used to repay debt worth Rs 240 crore. As of March 2024, its total debt stood at Rs 686 crore. Equirus Capital Private Limited and SBI Capital Markets Limited are the Book Running Lead Managers to the IPO.

Godavari Biorefineries Limited offers a diverse portfolio of bio-based chemicals, sugar, ethanol, and power, serving industries like food, beverages, pharmaceuticals, fragrances, power, fuel, personal care, and cosmetics.

As of March 31, 2024, it is one of India's largest ethanol producers, with a capacity of 570 KLPD. Its clients include Hershey India, Hindustan Coca-Cola, LANXESS India, IFF Inc., and major oil companies. The company has expanded its operations globally, serving customers in over 20 countries, including the USA, UK, China, Germany, and Japan.

For FY24, its total revenue stood at Rs 1686.67 crore versus Rs 2014.69 crore a year ago. Net profit stood at Rs 12.30 crore against Rs 19.64 crore last year.