Godavari Biorefineries IPO Anchor Allocation at 30%

Godavari Biorefineries IPO saw a positive anchor allocation response, with 30% of the total IPO size subscribed by anchor investors. Out of 15,759,938 shares on offer, anchors picked up 4,727,980 shares, demonstrating strong market confidence. The anchor allocation details were reported to the stock exchanges on 22nd October 2024, just ahead of the IPO opening on 23rd October 2024.

The book-built issue of ₹554.75 crores comprises a fresh issue of 9,232,955 shares aggregating to ₹325.00 crores and an offer for sale of 6,526,983 shares aggregating to ₹229.75 crores. The price band is set at ₹334 to ₹352 per share, with a face value of ₹10 per share. This includes a share premium of ₹342 per share at the upper end of the price band.

The anchor allocation process, which took place on 22nd October 2024, saw strong participation from institutional investors. The entire anchor allocation was made at the upper end of the price band, ₹352 per share, indicating robust demand and confidence in the company's prospects.

After the anchor allocation, the overall allocation of the Godavari Biorefineries IPO looks as follows:

Notably, the 47,27,980 shares allocated to anchor investors were reduced from the original Qualified Institutional Buyers (QIB) quota. As a result, the QIB quota has been reduced from 50% before the anchor allocation to 20% after the allocation. This adjustment ensures that the overall allocation to QIBs, including the anchor portion, remains within regulatory limits.

The lock-in period for anchor investors is an important aspect of the allocation. For Godavari Biorefineries Limited IPO, the lock-in details are as follows:

• Lock-in Period (50% Shares): 27th November 2024 
• Lock-in Period (Remaining Shares): 26th January 2025

This lock-in period ensures that anchor investors maintain their investments for a specified duration, stabilising the stock price after listing.

Anchor Investors in Godavari Biorefineries IPO 

Anchor investors are typically large institutional investors allotted shares in an IPO before it opens to the public. The anchor allocation process is a crucial part of the IPO, as it helps in price discovery and builds confidence among retail investors. The strong response from anchor investors often sets a positive tone for the public issue and can influence the overall subscription levels.

On 22nd October 2024, Godavari Biorefineries IPO completed the bidding for its anchor allocation. There was a robust response as the anchor investors participated in the book-building process. A total of 4,727,980 shares were allotted to 19 anchor investors. The allocation was done at the upper IPO price band of ₹352 per share, resulting in an overall anchor allocation of ₹166.42 crore. The anchors have already absorbed 30% of the total issue size of ₹554.75 crore, indicating strong institutional demand.

Out of the total allocation of 4,727,980 Equity Shares to the Anchor Investors, 2,374,218 Equity Shares (i.e., 50.22% of the total allocation) were allocated to 6 domestic mutual funds through 10 schemes.

Key IPO Details:

• IPO Size: ₹554.75 crores
• Shares Allocated to Anchors: 4,727,980
• Anchor Subscription Percentage: 30%
• Listing Date: 30th October 2024
• IPO Opening Date: 23rd October 2024

Read more about Godavari Biorefineries IPO

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