Godavari Biorefineries Ltd IPO

Godavari Biorefineries IPO Key Points

Objectives of the IPO:

• Repayment/pre-payment, in full or in part, of certain outstanding borrowings availed by our Company;
• General corporate purposes

Subscription details: Qualified Institutional Buyers: 50% Non-Institutional Buyers: 15% Retail: 35%

Potential benefits for investors: Private equity firm Mandala Capital AG Ltd will be selling 49.27 lakh shares through the OFS route. This will free up equity shares, which can be availed of by potential investors.

Godavari Biorefineries has seen sharp growth in the recent years and the sustainable energy market is projected to grow at a CAGR of 10.4% from 2023 to 2028. By investing in Godavari Biorefineries, investors can be a part of a company that is growing exponentially as well as be a part of an industry that will remain at the centre of upcoming policies and innovations.

Anchor Investors:

The anchor investor bid opens and ends on Oct 22, 2024. The company may allocate up to 60% of the QIB portion to anchor investors, out of which one third will be allocated to Mutual Funds.

Book Running lead manager:

Equirus Capital Private Limited
SBI Capital Markets Limited

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Godavari Biorefineries IPO Risk Factors

The company depends on a few suppliers for supply of a significant portion of raw materials (excluding sugarcane). Any failure to procure such raw materials from these suppliers may have an adverse impact on our manufacturing operations and results of operations.

Their cost of materials consumed constituted a majority of the total expenses incurred in the three months ended June 30, 2024 and Fiscals 2024, 2023 and 2022. Any further increase in the costs of materials consumed or their inability to reasonably offset costs with the prices of products may have an adverse impact on their profitability.

The company derives a portion of their revenue from a few products. Their results of operations may be adversely affected if revenues from such products decline.

Key Strategies of Godavari Bio refineries

• Continue to diversify product offerings and improving operational efficiency
• Implement additional measures for improving feedstock security and increasing value derived from feedstock
• Increase the share of business of existing customers and further diversify their customer base

Conclusion

A closing summary that reinforces the key aspects of Godavari Biorefineries’ IPO and the potential benefits for investors.