The Godavari Biorefineries IPO has opened for subscription and is making waves in the market. In this blog, we will take a closer look at all the essential details, including Godavari Biorefineries IPO GMP today, subscription status, financials, business overview, and more.
If you’re an investor looking to make informed decisions, or simply curious about the Godavari Biorefineries Limited IPO, this guide will help you understand what this IPO is all about.
Godavari Biorefineries Limited IPO Details
Here are the key details you need to know about the Godavari Biorefineries IPO:
| Detail | Information |
|---|---|
| IPO Open Date | October 23, 2024 |
| IPO Close Date | October 25, 2024 |
| Price Band | ₹334 to ₹352 per share |
| Lot Size | 42 shares (₹14,784 minimum investment) |
| Issue Size | ₹554.75 crore |
| Fresh Issue | ₹370 crore |
| Offer for Sale (OFS) | 6.5 million shares |
| Allotment Date | October 28, 2024 |
| Credit of Shares | October 29, 2024 |
| Listing Date | October 30, 2024 |
| Listing Exchange | BSE and NSE |
The IPO has a price band between ₹334 and ₹352 per share, and the minimum lot size is 42 shares, meaning a starting investment of around ₹14,784. The issue size totals ₹554.75 crore, comprising both a fresh issue and an offer for sale (OFS).
Godavari Biorefineries IPO Subscription Status
As of October 23, 2024, the subscription status for the Godavari Biorefineries IPO is as follows:
- Retail Investors: Subscribed 0.12 times
- Qualified Institutional Buyers (QIB): Subscribed 0.00 times
- Non-Institutional Investors (NII): Subscribed 0.03 times
- Total Subscription: 0.07 times overall
The subscription window remains open until October 25, 2024, allowing more time for interested investors to participate.
Godavari Biorefineries IPO GMP Today
The Godavari Biorefineries IPO GMP today (grey market premium) is currently ₹0. This means there is no premium being charged on the shares in the grey market, indicating that the listing might be flat, close to the upper end of the price band at ₹359.
While the Godavari Biorefineries IPO GMP today is neutral, it’s important to remember that GMP can fluctuate during the subscription period, and it doesn’t always predict the actual listing price.
Godavari Biorefineries Business Overview
Founded in 1956, Godavari Biorefineries Limited is one of India’s leading bio-refinery companies. They specialize in producing ethanol, bio-based chemicals, sugar, and power generation. Their products cater to industries like pharmaceuticals, agrochemicals, personal care, and fuel.
Key Business Segments:
- Ethanol: The company produces various grades of ethanol, including industrial and fuel-grade ethanol.
- Bio-based Chemicals: Godavari Biorefineries manufactures chemicals like methyl propyl oleate and bio ethyl acetate.
- Sugar: They produce sugar for domestic and industrial use.
- Renewable Energy: The company generates power using biomass, contributing to its sustainability efforts.
Godavari Biorefineries has a global presence, exporting to over 20 countries. Their focus on sustainability and eco-friendly practices, alongside ongoing research and development, make them a significant player in the bio-refinery sector.
Financials of Godavari Biorefineries
Let’s take a look at the financial performance of Godavari Biorefineries over the past few years:
| Financial Metric | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|
| Revenue from Operations | ₹16,866.65 million | ₹20,146.94 million | ₹17,023.29 million |
| Profit After Tax (PAT) | ₹122.99 million | ₹196.37 million | ₹190.97 million |
| Earnings Per Share (EPS) | ₹2.93 | ₹4.68 | ₹4.55 |
| EBITDA | ₹1,479.35 million | ₹1,546.16 million | ₹1,405.34 million |
| Cash and Cash Equivalents | ₹111.12 million | ₹212.73 million | ₹100.25 million |
| Debt/Equity Ratio | 1.34 | 1.28 | 1.25 |
From these numbers, we can observe that the company’s revenue has seen a decline from FY 2023 to FY 2024, and the PAT has also dropped. Additionally, the Godavari Biorefineries IPO GMP today shows a neutral sentiment, which could reflect investor caution due to these financials.
Review of Godavari Biorefineries IPO
The Godavari Biorefineries IPO has generated mixed reviews from analysts. Some are cautious, citing the company’s high debt levels and declining profitability. Others see potential in the company’s focus on ethanol production, especially with India’s increasing emphasis on ethanol blending for fuel.
Pros:
- Strong presence in the growing bio-refinery sector.
- Diverse product portfolio with a focus on sustainable products.
- Global market presence in over 20 countries.
Cons:
- High debt-to-equity ratio, which could limit future expansion.
- Fluctuating financial performance, with a drop in revenue and profit in FY 2024.
- Dependence on government policies related to ethanol production.
The Godavari Biorefineries IPO GMP today at ₹0 suggests a cautious outlook, but the long-term growth potential in the bio-refinery sector could be promising.
Godavari Biorefineries IPO Allotment and Listing Dates
For those who apply for the Godavari Biorefineries IPO, here are the important dates you should keep in mind:
- Allotment Date: October 28, 2024
- Credit of Shares to Demat Accounts: October 29, 2024
- Listing Date: October 30, 2024, on both BSE and NSE
If you’ve applied for the IPO, you’ll be able to check your allotment status on October 28, 2024.
Godavari Biorefineries IPO FAQ
1. What is the price band for Godavari Biorefineries IPO?
The price band is set between ₹334 and ₹352 per share.
2. What is the lot size for Godavari Biorefineries IPO?
The minimum lot size is 42 shares, requiring a minimum investment of approximately ₹14,784.
3. What is the Godavari Biorefineries IPO GMP today?
The Godavari Biorefineries IPO GMP today is ₹0, indicating expectations of a flat listing.
4. When is the Godavari Biorefineries IPO closing?
The IPO closes on October 25, 2024.
5. When will the allotment be finalized?
The allotment will be finalized on October 28, 2024.
6. What is the total issue size of the IPO?
The total issue size is ₹554.75 crore, with a fresh issue of ₹370 crore and an offer for sale (OFS) of 6.5 million shares.
7. What are the funds from the IPO used for?
The company plans to use the funds to repay debt and for general corporate purposes.
8. When will the shares be listed?
The shares are expected to be listed on October 30, 2024, on both BSE and NSE.
9. Should you invest in the Godavari Biorefineries IPO?
Analysts have mixed views. While the company has potential in the bio-refinery sector, it is also facing challenges related to high debt and fluctuating profits. The Godavari Biorefineries IPO GMP today suggests a flat listing, so investors should carefully weigh the risks and opportunities.
10. How can I check the Godavari Biorefineries IPO allotment status?
You can check the allotment status through your brokerage platform or the registrar’s website after the allotment is finalized on October 28, 2024.
Conclusion
The Godavari Biorefineries IPO presents an opportunity for investors in the bio-refinery sector, but with a cautious outlook. The Godavari Biorefineries IPO GMP today at ₹0 suggests a neutral sentiment, so it’s crucial to evaluate both the potential risks and rewards before making a decision.
Keep an eye on the subscription status and market conditions to make an informed choice about whether this IPO is right for you.