Godavari Biorefineries' initial share sale was fully subscribed on the third and final day of subscription on October 25, aided majorly by qualified institutional buyers and retail investors.
Investors have applied for 2.06 crore equity shares so far, higher by 1.83 times against the offer size of 1.12 crore shares, the subscription data on the exchanges showed.
Qualified institutional buyers lend major support to the issue, buying 2.76 times the allotted quota, followed by retail investors who have subscribed 1.71 times the portion set aside for them. The part reserved for non-institutional investors remained undersubscribed as they have bought 90 percent shares of their portion.
The Rs 555-crore maiden public issue remained undersubscribed in the first two days of bidding with 27 percent and 54 percent subscriptions, respectively.
The ethanol-based chemicals maker's IPO shares seem to be getting muted interest from grey market traders, trading at just 1-4 percent premium over the upper price band, market observers said. The grey market is an unofficial market for trading in IPO shares till the listing.
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The IPO is a combination of fresh issuance of equity shares worth Rs 325 crore and an offer-for-sale of 65.26 lakh shares worth Rs 229.75 crore. The price band for the offer is Rs 334-352 per share.
Mandala Capital AG will be the biggest selling shareholder in the offer-for-sale portion, offloading 49.26 lakh shares and exiting the company, while the remaining shares will be sold by promoters.
Mumbai-based Godavari Biorefineries with a product portfolio of bio-based chemicals, sugar, various grades of ethanol, and power will utilise Rs 240 crore out of the net fresh issue proceeds to repay debt and the remainder will be used for general corporate purposes.
Its products are used in several industries such as food, beverages, pharmaceuticals, flavours and fragrances, power, fuel, personal care, and cosmetics.
The company will finalise its basis of allotment of IPO shares by October 28 and further will credit those shares in the demat accounts of successful investors by October 29.
The participants can start trading in Godavari Biorefineries shares on the BSE and NSE effective October 30.
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