Godavari Biorefineries shares make poor debut: List at 12% discount

On the National Stock Exchange (NSE), Godavari Biorefineries shares listed at a discount of 12.5 per cent at Rs 308, against the IPO issue price of Rs 352

Godavari Biorefineries IPO listing today: Shares of ethanol-based chemical maker Godavari Biorefineries made a subdued debut on the bourses on Wednesday. On the BSE, Godavari Biorefineries shares listed at Rs 310.55, reflecting a discount of 11.77 per cent against the IPO issue price of Rs 352.

 

Similarly, on the National Stock Exchange (NSE), Godavari Biorefineries listed at a discount of 12.5 per cent at Rs 308, against the IPO issue price.

 

Ahead of its listing, the grey market premium (GMP) of Godavari Biorefineries' IPO was quoted around Rs 5, or approximately 1.42 per cent, indicating a subdued listing for the company’s shares, according to sources tracking grey market activities.

 

 

The allotment for Godavari Biorefineries IPO shares, available at a price band of Rs 334-352 per share with a lot size of 42 shares, was finalised on Monday, October 28, 2024. With the IPO, Godavari Biorefineries offered a fresh issue of 9,232,955 shares worth approximately Rs 325 crore and an offer for sale (OFS) of 6,526,983 shares with a face value of Rs 10 apiece, totaling around Rs 229.75 crore.

 

The public issue received decent demand from investors, with the IPO being subscribed 1.83 times by the final day of subscription, driven primarily by qualified institutional buyers (QIBs), who placed the highest bid for the IPO with a subscription rate of 2.76 times, followed by retail investors at 1.71 times. Meanwhile, the non-institutional investors (NIIs) portion was subscribed 0.90 times by the last day of the subscription, as per NSE data.

 

Godavari Biorefineries seeks to utilise the net proceeds from the public issue for the repayment or pre-payment, in full or in part, of certain outstanding borrowings, as well as for general corporate purposes.

 

Godavari Biorefineries is a leading manufacturer of ethanol-based chemicals in India, operating the country's largest integrated bio-refinery. The company produces a diverse range of bio-based products, including sugar, ethanol, and chemicals, using sugarcane as feedstock. With a strong focus on sustainability, Godavari Biorefineries minimises waste and promotes eco-friendly practices throughout its operations. Its products cater to various industries, including food, pharmaceuticals, personal care, and fuel, with exports to over 20 countries worldwide.