Godavari Biorefineries files DRHP to raise funds via IPO

Godavari Biorefineries, India’s leading manufacturer of ethanol-based chemicals, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO).

According to the draft papers, the fresh issue totals Rs 325 crore and offers for sale 65,26,983 equity shares with face value of Rs 10 each.

The company plans to use the net proceeds from the fresh issue to repay or pre-pay certain outstanding borrowings of Rs 240 crore in full or in part. The balance amount will be used for general corporate purposes.

The offer for sale (OFS) comprises 4,926,983 equity shares by Mandala Capital AG Limited, 500,000 equity shares by Somaiya Agencies Private Limited, 200,000 equity shares by Sameer Shantilal Somaiya, 200,000 equity shares by Laxmiwadi Mines & Minerals Private Limited, 300,000 equity shares by Filmmedia Communication Systems Private Limited and 100,000 equity shares by Somaiya Properties & Investments Private Limited.

Equirus Capital Private Limited and SBI Capital Markets Limited are the book-running lead managers for the IPO.

As of March 31, 2024, the company has the largest integrated bio-refinery in India in terms of installed capacity and is the largest manufacturer of MPO worldwide in terms of installed capacity. According to the Frost & Sullivan report, it is one of only two manufacturers of natural 1,3 butylene glycol and the only company in India to manufacture bioethyl acetate.

According to Frost & Sullivan report, the company will set up India’s first bio-based EVE manufacturing facility by March 31, 2024.

Godavari Biorefinery’s diverse portfolio includes bio-based chemicals, sugar, various grades of ethanol, and power. These products are used in several industries such as food, beverages, pharmaceuticals, flavours and fragrances, power, fuel, personal care, and cosmetics.
Over the years, the company has significantly expanded its scale of operations and global presence. During fiscal years 2024, 2023 and 2022, it has served customers in over 20 countries, including Australia, China, Germany, France, Italy, Japan, Kenya, Netherlands, Singapore, United Kingdom, United Arab Emirates, Indonesia and the United States.

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