Godavari Biorefineries IPO subscribed 27% on day 1, retail quota booked 48%

Godavari Biorefineries IPO

Godavari Biorefineries' Rs 555-crore initial public offering had a muted start on October 23, the first day of bidding. The issue was subscribed 27 percent with investors buying 30.48 lakh equity shares against offer size of 1.12 crore shares.

The IPO is a mix of fresh issue of Rs 325 crore, and an offer-for-sale of 65.26 lakh shares worth Rs 229.75 crore by existing shareholders including promoters. The price band for the issue, which closes on October 25, has been fixed at Rs 334-352 per share.

As per the subscription data with the exchanges, retail investors bid 48 percent shares of their reservation, and non-institutional investors bought 12 percent shares of their portion set aside for them. Qualified institutional buyers also started putting in bids for the issue, picking up 0.2 percent shares of their allotted quota.

On October 22, the ethanol producer mobilised Rs 166.42 crore out of the total issue size, from 15 anchor investors at the upper price band. Key investors that participated in the anchor book on Tuesday were ICICI Prudential Mutual Fund, HDFC Mutual Fund, Whiteoak Capital Mutual Fund, 360 ONE Equity Opportunity Fund, Goldman Sachs, Societe Generale and Vikas Khemani-backed Carnelian Structural Shift Fund.

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Investor Mandala Capital AG is going to exit Godavari Biorefineries by selling its entire shareholding of 49.26 lakh shares in the offer-for-sale.

The Mumbai-based company makes bio-based chemicals, sugar, ethanol and power, having a bio-refinery capacity of 570KLPD for manufacturing ethanol, which supplies products to several industries such as food, beverages, pharmaceuticals, flavours & fragrances, power, fuel, personal care and cosmetics.

It will repay its debt of Rs 240 crore through fresh issue proceeds. And the remainder fresh issue money will be used for general corporate purposes.