IPO Details
Bidding Dates
23 Oct 24 - 25 Oct 24
Price Range ₹
334 - 352
Total Equity
₹ 396.87Cr
Lot Size
42
Exchange Status
BSE,NSE
IPO Doc
Subscription Rate
Non-Institutional Investor
1.71×
Qualified Institutional Buyers
2.76×
Employees
0.00×
Retail Investors
1.71×
Total subscription Rate
1.83×
IPO Timeline
Offer start
23 Oct 2024
Offer end
25 Oct 2024
Allotment
28 Oct 2024
Refund initiation
29 Oct 2024
Demat transfer
29 Oct 2024
Listing
30 Oct 2024
Offer start
23 Oct 2024
Offer end
25 Oct 2024
Allotment
28 Oct 2024
Refund initiation
29 Oct 2024
Demat transfer
29 Oct 2024
Listing
30 Oct 2024
About Company
Incorporated in 1956, Godavari Biorefineries Limited specializes in the manufacture of ethanol-based chemicals in India. As of June 30, 2024, the company operates an integrated biorefinery with a production capacity of 570 KLPD for ethanol. As of March 31, 2024, it stands as the world's largest producer of MPO based on installed capacity. Additionally, it is one of only two manufacturers of natural 1,3-butanediol and the sole producer of bio ethyl acetate in India. The company's diverse product portfolio includes bio-based chemicals, sugar, various grades of ethanol, and power. These products are utilized across several industries, including food and beverages, pharmaceuticals, flavors and fragrances, power generation, fuel, personal care, and cosmetics. Godavari Biorefineries boasts three research and development facilities registered with the Department of Scientific and Industrial Research (DSIR): one at the Sakarwadi Manufacturing Facility, another at the Sameerwadi Manufacturing Facility, and a third in Navi Mumbai, Maharashtra. As of June 30, 2024, the company employs 52 permanent research staff, including eight scientists with doctoral degrees. As of October 2024, the company has secured 18 patents and received 53 registrations for its products and processes across various countries. The company serves a distinguished client base that includes notable companies such as Hershey India Pvt Ltd, Hindustan Coca-Cola Beverages Private Limited, Karnataka Chemical Industries, Techno Waxchem Pvt Ltd, LANXESS India Private Limited, IFF Inc., Ankit Raj Organo Chemicals Limited, Escorts Chemical Industries, Khushbu Dye Chem Pvt Ltd, Privi Speciality Chemicals Limited, Shivam Industries, and major oil marketing firms. Godavari Biorefineries caters to customers in over twenty countries, including Australia, China, Germany, France, Italy, Japan, Kenya, the Netherlands, Singapore, the United Kingdom, the United Arab Emirates, Indonesia, and the United States. The company operates two manufacturing facilities, located in Bagalkot, Karnataka, and Ahmednagar, Maharashtra. As of June 30, 2024, Godavari Biorefineries has a workforce of 1,583 permanent employees, comprising 437 semi-skilled and unskilled workers.
Year Founded
12-01-1956
Promotor Details
Samir Shantilal Somaiya
Promoter Holdings Details
| Particular | Pre-IPO | Post-IPO |
|---|---|---|
| Percentage | 81.06 | 63.31 |
| Share Capital | 34000110 | 32400110 |
Offer to Public
1,12,74,739.00 Cr
Project Details
- Funding capital expenditure for the Potash Unit - 106.2cr
- General corporate purposes - 636.06cr
- Repayment/pre-payment, in full or in part, of certain outstanding borrowings availed by our Company - 2400cr
Objectives
- Repayment/pre-payment, in full or in part, of certain outstanding borrowings availed by our Company.General corporate purposes.
Highlights
- The company has established India’s first bio-based EVE manufacturing facility and operates two advanced manufacturing plants, including the Sameerwadi facility with a substantial capacity of 18,000 tonnes crushed per day (TCD) and an ethanol production capacity of 570 kilolitres per day (KLPD).
- Godavari Biorefineries has a prestigious and diverse clientele, serving well-known companies such as Hershey India, Hindustan Coca-Cola, and LANXESS. This broad customer base enhances its market reputation and stability.
- The Sakarwadi and Sameerwadi manufacturing facilities are certified for quality management (ISO 9001:2015) and environmental management (ISO 14001:2015), demonstrating the company’s commitment to high standards and responsible operations.
- Godavari Biorefineries serves customers in over 20 countries, including major markets like the USA, Germany, and Japan. This international reach allows for diversification and reduces reliance on any single market.
- The company has a strong emphasis on research and development, with facilities registered with the Department of Scientific and Industrial Research (DSIR) and a skilled team of researchers. This focus on innovation positions Godavari Biorefineries to develop new products and improve existing processes.
Challenges
- The company sources essential raw materials, such as special denatured spirit (SDS), acetic acid, methyl ethyl ketone (MEK), and molasses, from a limited number of suppliers in India, the US, and the UAE. The absence of long-term contracts increases vulnerability to supply chain disruptions, which can hinder operations and adversely affect the business.
- Godavari Biorefineries relies heavily on a small number of major customers, with the top 10 customers contributing a significant portion of revenue (57% in FY24). Any loss of these customers, decreased demand, or inability to retain them could have a substantial negative impact on the company’s financial performance.
- The company's revenue is primarily generated from a narrow range of products, including sugar, ethyl acetate, ethanol, and 3-methyl-3-penten-2-one (MPO). Fluctuations in demand for these products or increased competition could negatively affect revenue generation.
- The company, along with its promoters and directors, is involved in certain legal proceedings. Any adverse judgments in these cases could harm the company’s reputation and business prospects.
- A significant portion of the company's ethanol sales is linked to the Government of India's ethanol blended petrol program. Any adverse changes in government policies or regulations related to this program could negatively impact the company's operations and revenue.
Financials
| Years | Total Assets | Share Capital | Profit After Tax | Consolidated Net Profit | Adjusted EPS |
|---|---|---|---|---|---|
| 2022 | 17,335.38 | 419.43 | 196.37 | 196.37 | 4.6818 |
| 2021 | 1,44,170.17 | 4,194.30 | -4,471.23 | -4,471.23 | -12.1 |
| 2023 | 17,435.20 | 419.43 | -4,471.23 | -4,471.23 | -12.1 |
| 2020 | 14,188.22 | 419.43 | -7,764.74 | -7,764.74 | -21.727 |
| 2024 | 19,916.60 | 419.43 | -4,471.23 | -4,471.23 | -12.1 |
