Godavari Biorefineries Limited is India’s biggest integrated bio-refinery, one of the major manufacturers of ethanol, and a pioneer in the production of ethanol-based chemicals. Godavari Biorefineries IPO will hit the stock market in December 2021.
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About Godavari Biorefineries
Godavari Biorefineries is the world ‘s biggest producer of MPO, one of only two producers of natural 1,3 butylene glycol, India’s fourth largest producer of ethyl acetate, and the country’s sole producer of bio ethyl acetate.
Their diverse product offering, which includes bio-based chemicals, sugar, rectified spirits, ethanol, and various grades of alcohol, is used in a variety of sectors.
Their firm is the only one in India with such a diverse range of biobased goods. They are part of the Somaiya group of enterprises, which has over 80 years of sugar industry expertise and over 60 years of bio-based chemicals industry expertise.
Products & Raw Material
They use sugarcane as a feedstock to make a variety of items, including sugar, ethanol, bio-based chemicals, and power, and they were one of the first firms in India to use sugarcane juice and syrup to make ethanol (source: Frost & Sullivan Report).
They are always working to increase sugarcane valorisation by developing down-stream goods and boosting sugarcane diversion to value-added products.
They think that their lengthy history of buying sugarcane and providing ongoing support to the farmers has built strong connections and goodwill with the farmers.
Manufacturing Facility
Their Sameerwadi Production Plant is one of India’s top ten sugar complexes, and they are one of the country’s major ethanol producers, with a capacity of 380 KLPD as of June 30, 2021.
Their rectified spirits are transformed into several grades of ethanol, such as fuel ethanol, pharmaceutical grade ethanol, and extra neutral alcohol (the “Rectified Spirits and Ethanol”).
They aim to increase their ethanol manufacturing capacity from 380 KLPD (as of June 30, 2021) to 570 KLPD in order to boost sugarcane valorisation and in light of government measures to increase fuel ethanol blending. They have received environmental permission for this expansion.
Clients
Biocon Limited, Cipla Limited, Deccan Fine Chemicals (India) Private Limited, Dr. Reddy’s Laboratories Limited, Hershey India Private Limited, Hindustan Coca-Cola Beverages Private Limited, International Flavors & Fragrances, OG Corporation, Privi Speciality Chemicals Limited, Sun Pharmaceutical Industries Limited, United Spirits Limited, and Varun Beverage Limited are some of our notable clients.
They’ve grown their business and global reach substantially over the years. They now have clients from over 20 nations, including Australia, China, France, Germany, Italy, Japan, Kenya, the Netherlands, Nigeria, Singapore, Switzerland, the United Kingdom, the United Arab Emirates, and the United States.
Godavari Biorefineries IPO
Godavari Biorefineries Limited, headquartered in thane has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 370 crores and 6,558,278 equity share on 24 September 2021.
The offer includes 370 crores value fresh equity shares and there is an offer for sale (OFS) of 6,558,278 equity share by the promoters mentioned in the DRHP. They are also looking to for pre-ipo placement of INR 100 crores.
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |||
| Total Assets | 1,441.70 | 1,434.49 | 1,641.75 | ||
| Total Revenue | 1,546.38 | 1,472.80 | 1,566.33 | ||
| Profit After Tax | 27.15 | 4.06 | 5.53 | ||
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2021 | 6.47 | 6.47 | 3 |
| Financial Year 2020 | 1.00 | 1.00 | 2 |
| Financial Year 2019 | 1.46 | 1.46 | 1 |
| Weighted Average | 3.81 | 3.81 |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of the offer
The following are some of the fundamental variables that contribute into determining the Offer Price:
- In India, one of the major producers of ethanol and a pioneer in the production of ethanol-based compounds.
- Company with a fully integrated biorefinery and long-standing partnerships with sugarcane growers.
- Product range is diverse, and ties with a diverse client base across sectors are well-established.
- In-house research and development skills are well-developed.
- Experienced promoter, board of directors, and key management people from the Somaiya group.
Godavari Biorefineries IPO Peer Comparison
There are no publicly traded businesses in India that operate in a similar industry to theirs. As a result, providing an industry comparison in respect to their Company is not feasible.
Godavari Biorefineries IPO Details
| IPO Opening Date | December 2021 |
| IPO Closing Date | December 2021 |
| Issue Type | Book Building |
| Face Value | 10 per share |
| IPO Price | 0 to 0 per equity share |
| Market Lot | – |
| Min Order Quantity | – |
| Listing At | BSE, NSE |
| Issue Size | – |
| Fresh Issue | 370 crore |
| Offer for Sale | 6,558,278 Equity shares |
Godavari Biorefineries IPO Date
Godavari Biorefineries IPO opening date is December 2021, and the closing date is December 2021. The Godavari Biorefineries IPO issue may list in December 2021.
| IPO Opening Date | December 2021 |
| IPO Closing Date | December 2021 |
| Basis of Allotment Date | December 2021 |
| Initiation of Refunds | December 2021 |
| Credit of Shares to Demat Account | December 2021 |
| IPO Listing Date | December 2021 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 50 |
Roughly
equivalent
|
| Non Institutional Investor | 15 |
Roughly
equivalent
|
| Retail | 35 | Minimum level of 1 lot, based on availability, for every shareholder. |
Godavari Biorefineries IPO Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Godavari Biorefineries IPO.
Godavari Biorefineries IPO GMP
Godavari Biorefineries IPO Grey Market Premium is 0.
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
| December 2021 | |||
| December 2021 | |||
| December 2021 | |||
| December 2021 | |||
| December 2021 | |||
| December 2021 | |||
| December 2021 | |||
| December 2021 | |||
| December 2021 | |||
| December 2021 | |||
| December 2021 | |||
| December 2021 |
Godavari Biorefineries IPO Review
Godavari Biorefineries IPO review will depend on the price band which will be announced after SEBI Approval. Whenever it will be announced we will update you regarding review of Godavari Biorefineries IPO is good or bad.
Godavari Biorefineries IPO Risk
- In the sugar, distillery, and cogeneration divisions, they rely on the supply of sugarcane, molasses, and feedstock to manufacture their goods.
- A small number of goods account for a substantial part of their revenue.
- The success of their research and development projects is critical to their initiatives to offer new goods.
- They do not control the trademarks for the ‘Somaiya Group,’ and their ability to use these trademarks, names, and logos might be limited.
- The ongoing impact of the coronavirus outbreak might have a substantial impact on their operations and could harm their business.
- Their production volume forecasts may not match the actual demand for their products.
Other Threats
- Their power business has been reliant on a power purchase agreement with a group of state-owned procurers in the state of Karnataka.
- Foreign currencies account for a percentage of their revenue. As a consequence, they are subject to risks associated with foreign currency exchange.
- Their Promoters and a few of their Directors have a stake in the businesses from whom they want to buy land.
- The secured credit facilities and any other existing liabilities may put restrictions on their capacity to conduct the business.
- Certain legal procedures involving their Company, Promoters, and Directors are still pending. Any bad conclusion might have a detrimental impact on their company.
Research and Development
They have regularly involved in R&D and technology, and have successfully implemented some of them at their Production Plant based on market/customer demand over the years.
As of the date of this Draft Red Herring Prospectus, they have patented 13 products/processes and received 41 registrations in relation to them in various nations.
They have three registered research and development facilities (the “R&D Facilities”), one at each Manufacturing Facility and one in Navi Mumbai, Maharashtra, with the Department of Scientific and Industrial Research, Government of India (“DSIR”).
In the past, we’ve worked on R&D projects with a variety of third parties.
Farmer Initiatives
They have implemented and will continue to implement farmer-related initiatives such as providing technical guidance on certain farming practises.
It includes variety selection, soil, water testing, and fertilisers, providing agrochemicals and irrigation materials, making agricultural input procurement easier for farmers, and organising farmer training programmes and field visits.
Farmers are receiving agricultural inputs in exchange for future cane deliveries. They want to increase their sugarcane crushing capability at the Sameerwadi Manufacturing Facility by 3,000 TCD, bringing the total capacity to 18,000 TCD. It will assist them in acquiring feedstock for their projected distillery expansion.
Godavari Biorefineries IPO Brokerage views
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
Godavari Biorefineries IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| December 2021 | 1 | |||||
| December 2021 | 2 | |||||
| December 2021 | 3 |
Promoters
- Samir Shantilal Somaiya
- Somaiya Agencies Private Limited
Somaiya group
They are the major firm of the multinational Somaiya group, which has interests in a variety of areas, including education, agricultural research, renewable energy, and healthcare. They may take use of the Somaiya group’s expertise, talents, and reputation in their business operations.
They also have a robust and well-experienced Board of Directors and senior management staff who actively contribute to its operations and strategy.
Samir Shantilal Somaiya, their Promoter and Chairman and Managing Director, has played a key role in their development and success.
Promoter’s Holding
| Pre Issue Share Holding | 36.66% |
| Post Issue Share Holding |
Awards & Certification
They’ve tried to include sustainable methods into their operations in addition to their products. They are Responsible Care® certified and have received numerous awards.
It includes the Indian Chemical Council’s “Water Resource Management in Chemical Industry” Award in 2015, FICCI’s “Efficiency in Water Usage-Chemicals” Award in 2016, and the Indian Federation of Green Energy’s “Outstanding Renewable Energy Generation-Biofuel” Award in 2019.
They received certification from BONSUCRO indicating that we are in accordance with their standards for “production of white refined sugar and molasses from sugarcane.”
Godavari Biorefineries IPO Prospectus
Contact Details
Godavari Biorefineries Limited
Somaiya Bhavan, 45/47, M.G. Road,
Fort, Mumbai – 400 001, Maharashtra
Tel: +91 22 6170 2100
E-mail: [email protected]
Website: www.godavaribiorefineries.com
Registrar
Link Intime India Private Limited
C 101, 247 Park
L.B.S Marg, Vikhroli (West)
Mumbai – 400 083, Maharashtra
Telephone no.: +91 22 4918 6200
Email: [email protected]
Website: www.linkintime.co.in
Lead Manager(s)
- JM Financial Limited
- Equirus Capital Private Limited
We hope we are able to answer all your questions about Godavari Biorefineries IPO. If you don’t have a Demat account, open it now with Zerodha best trading app of India.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
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Note:
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FAQ
Godavari Biorefineries IPO Opening Date?
Godavari Biorefineries IPO will open in December 2021.
Godavari Biorefineries IPO Listing Date?
Godavari Biorefineries IPO will list in December 2021.
Godavari Biorefineries IPO GMP Today?
Godavari Biorefineries IPO Grey Market Premium is INR 0 .
Godavari Biorefineries IPO Allotment Date?
Godavari Biorefineries IPO basis of allotment will be in December 2021.
Lot size for Godavari Biorefineries IPO?
Lot size for Godavari Biorefineries IPO is 0.
