Godavari Biorefineries IPO Raises Rs 166 Cr from Anchor Investors

New Delhi, Oct 22 (PTI) Ethanol and bio-based chemicals maker Godavari Biorefineries Ltd on Tuesday said it has raised over Rs 166 crore from anchor investors, a day before its initial share-sale opening for public subscription.

Marquee investors who participated in the anchor book included HDFC Mutual Fund, Whiteoak Capital Fund, Goldman Sachs (Singapore) Pte Ltd, Societe General and SBI General Insurance, according to a circular uploaded on BSE website.

As per the circular, Godavari Biorefineries allocated 47.28 lakh equity shares to 19 funds at Rs 352 apiece, which is also the upper price band of the IPO. This translates into a transaction size of Rs 166.42 crore.

Of the total allocation of 47.28 lakh equity shares to anchor investors, 23.74 lakh shares -- accounting for 50.22 per cent of the total -- were allotted to six domestic mutual funds across 10 schemes.

The IPO will be available for subscription between Rs 334 and Rs 352 per share during October 23-25.

The proposed initial share-sale is a combination of fresh issue of equity shares worth Rs 325 crore and an Offer-for-Sale (OFS) of 65.27 lakh equity shares valued Rs 230 crore, at the upper-end of the price band, by promoters and an investor. This translates into the total IPO size of Rs 555 crore.

Private equity firm Mandala Capital AG Ltd is offloading 49.27 lakh shares through the OFS route.

Proceeds from the fresh issue to the tune of Rs 240 crore will be used for debt payment and the remaining amount for general corporate purposes.

The company market valuation has been pegged at Rs 1,800 crore at the upper-end of the price band.

Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.

The Maharashtra-based Godavari Biorefineries is one of the prominent manufacturers of ethanol-based chemicals in India. The company's diversified product portfolio comprises bio-based chemicals, sugar, different grades of ethanol and power.

These products find application in a range of industries such as food, beverages, pharmaceuticals, flavours & fragrances, power, fuel, personal care and cosmetics.

According to a Frost & Sullivan Report, the bio-based chemicals market has been growing exponentially owing to the increasing need for environmentally sustainable solutions.

The market for bio-based chemicals in 2023 was valued at USD 97.2 billion, expected to be growing at a CAGR (compound annual growth rate) of 10.4 percent, for the next five years from 2023 to 2028.

SBI Capital Markets and Equirus Capital Markets are the book running lead managers of the public issue.