Godavari Biorefineries submits draft documents with SEBI for maiden bid

Godavari Biorefineries Ltd has submitted draft documents for its first initial public offering (IPO) to the Securities and Exchange Board of India (SEBI). The company, involved in the manufacturing of ethanol-based chemicals, has sought regulator approval for the new listing and filed a draft red herring prospectus (DRHP) to capitalize funds through the offering.

The company’s maiden offer included a fresh issue of Rs 325 crore and an offer for sale (OFS) of up to 6.53 million shares by existing shareholders and promoters, Moneycontrol reported. The OFS includes up to 4.93 million shares sold by Mandala Capital AG, up to 5 lakh shares by Somaiya Agencies, around 2 lakh shares offered by Samir Shantilal Somaiya and Lakshmiwadi Mines and Minerals each, around 3 lakh shares sold by Filmia. Communication Systems, and up to 1 lakh shares offered by Somaiya Properties and Investments.

The funds raised from the issue would be used to repay debt worth Rs 240 crore. Around March 2024, the company’s overall debt stood at Rs 686 crore. The IPO is being managed by Equirus Capital Private Limited and SBI Capital Markets Limited as lead book managers.

The company deals in a diverse range of bio-based chemicals, ethanol, sugar and electricity, and is involved in industries such as food, pharmaceuticals, perfumes, beverages , fuels, personal care and cosmetics, among others.

The company was one of the largest ethanol producers in the country, as of the end of March 2024, with a capacity of 570 KLPD. The Company’s clients include Hindustan Coca-Cola, LANXESS India, Hershey India, IFF Inc and other major oil companies. The company has also expanded its presence overseas and currently serves customers in more than 20 countries, including the United States, United Kingdom, China, Japan and Germany.

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