Godavari Biorefineries IPO Opens for Subscription with Steady Start and ₹0 Grey Market Premium

The initial public offering (IPO) of Godavari Biorefineries, a prominent player in the ethanol and bio-based chemicals sector, opened for subscription on Wednesday, October 23, and will close on Friday, October 25. Ahead of the IPO launch, the company secured over ₹166 crore from anchor investors on Tuesday, October 22. Notable institutional players in the anchor book include HDFC Mutual Fund, Whiteoak Capital Fund, Goldman Sachs (Singapore) Pte Ltd, Societe Generale, and SBI General Insurance, as reported on the BSE website.

The price band for the Godavari Biorefineries IPO is set between ₹334 and ₹352 per equity share, with a face value of ₹10. Investors can apply in lots of 42 shares, with additional purchases in multiples of 42. The allocation is structured as follows: up to 50% of shares are reserved for qualified institutional buyers (QIBs), at least 15% for non-institutional investors (NIIs), and a minimum of 35% for retail investors. Based in Maharashtra, Godavari Biorefineries is recognized as one of India’s leading producers of ethanol-based chemicals, with a diverse product portfolio that includes bio-based chemicals, sugar, various grades of ethanol, and power generation. This diversification positions the company as a key player in the bio-economy, aligning with the growing demand for sustainable energy sources.

The IPO consists of a fresh issue of equity shares worth ₹325 crore and an offer for sale (OFS) of 65.27 lakh equity shares, valued at ₹230 crore at the upper end of the price range, bringing the total IPO size to ₹555 crore. Mandala Capital AG Ltd, a private equity firm, is selling 49.27 lakh shares through the OFS route.

As for the subscription status, the Godavari Biorefineries IPO opened at 10:00 am on October 23. By 11:24 am, it had received a total subscription of 7%, with retail investors booking 12% of their allocated quota and non-institutional investors subscribing at 3%. The grey market premium (GMP) currently stands at ₹0, indicating that shares are trading at their issue price of ₹352, reflecting a neutral sentiment among investors. Analysts suggest this stability in the GMP may indicate cautious optimism, predicting that the trend will remain unchanged until the listing day.

Overall, the Godavari Biorefineries IPO appears to be off to a steady start, with interest from institutional investors and a carefully structured allocation for various investor categories.

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