Godavari Biorefineries IPO: Ethanol-based chemicals maker eyes ₹240 crore from fresh issue
Godavari Biorefineries, a leader in ethanol and bio-based chemicals, filed for an IPO on June 15, proposing a ₹325 crore offering. The IPO includes ₹240 crore for debt repayment and the rest for corporate needs. Mandala Capital AG plans to sell 49.27 lakh shares, with SBI Capital Markets and Equirus Capital Markets as lead managers. Based in Maharashtra, the company’s diverse products cater to sectors like food, pharmaceuticals, and power.
Godavari Biorefineries, a leading producer of ethanol and bio-based chemicals, has taken a significant step towards raising funds through an initial public offering (IPO) by submitting preliminary papers to the Securities and Exchange Board of India (SEBI) on June 15.
The company’s proposed IPO includes a fresh issue of equity shares valued at ₹325 crore, along with an Offer-for-Sale (OFS) of 65.27 lakh equity shares by promoters and an investor, as detailed in the draft red herring prospectus (DRHP).
Among the shares being offered, private equity firm Mandala Capital AG plans to sell 49.27 lakh shares via the OFS route.
From the fresh issue, ₹240 crore will be allocated to debt repayment, with the remainder designated for general corporate purposes.
SBI Capital Markets and Equirus Capital Markets have been appointed as the book running lead managers for the public issue
Based in Maharashtra, Godavari Biorefineries is recognised for its extensive product range, which includes bio-based chemicals, sugar, multiple grades of ethanol, and power.
These products serve various sectors such as food, beverages, pharmaceuticals, flavors & fragrances, power, fuel, personal care, and cosmetics.
A report by Frost & Sullivan highlights the rapid growth of the bio-based chemicals market, driven by the need for environmentally sustainable solutions.
The market was valued at $97.2 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 10.4% from 2023 to 2028.
SBI Capital Markets and Equirus Capital Markets are the book running lead managers of the public issue.
First Published: Jun 16, 2024 12:42 PM IST
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