Godavari Biorefineries IPO: Day 1 Subscription at 0.14 Times - Will Investor Interest Surge?

Godavari Biorefineries' initial public offering (IPO) has received modest investor interest on its opening day. The IPO witnessed cautious demand, resulting in a 0.14 times subscription by 2:19:12 PM on day one. This initial response indicates measured investor sentiment towards Godavari Biorefineries' shares at the start of the subscription period.

The IPO, which opened on 23rd October 2024, has seen varied participation across categories. The Retail Investors segment has shown moderate interest, while Non-Institutional Investors (NII) and Qualified Institutional Buyers (QIB) have shown limited participation in the initial hours.

This measured response to Godavari Biorefineries' IPO comes as the company seeks to establish its presence in the public markets, with its position as India's largest producer of MPO and its focus on ethanol-based chemicals being key considerations for investors.

Subscription Status of Godavari Biorefineries IPO for Day 1:

Here are the subscription details for Godavari Biorefineries IPO as of Day 1 (23rd October 2024, 2:19:12 PM):

Total Applications: 28,879

Note: The total amount is calculated based on the upper price of the issue price range.

Key Highlights:

• Godavari Biorefineries IPO is currently subscribed 0.14 times, with mild response from retail investors.
• Retail investors have demonstrated moderate interest, with a subscription ratio of 0.25 times.
• Non-Institutional Investors (NII) have shown minimal interest, with a subscription ratio of 0.06 times.
• Small Non-Institutional Investors (sNII) have shown slightly better response with 0.12 times subscription.
• Large Non-Institutional Investors (bNII) have shown limited interest with 0.03 times subscription.
• Qualified Institutional Buyers (QIB) have shown negligible interest, with a subscription ratio of 0.00 times.
• The overall subscription trend shows cautious investor sentiment towards the issue.

About Godavari Biorefineries Limited

Godavari Biorefineries Limited, incorporated in 1956, is a leading manufacturer of ethanol-based chemicals in India. As of June 30, 2024, the company operates an integrated biorefinery with a capacity of 570 KLPD for ethanol production. The company is the largest producer of MPO in the world based on installed capacity and one of only two manufacturers of natural 1,3-butanediol, as well as the only company in India manufacturing bio ethyl acetate.

For the fiscal year 2024, Godavari Biorefineries recorded revenue of ₹1,701.06 crore, marking a -15.92% year-over-year change, and a Profit After Tax (PAT) of ₹12.30 crore. The company's net worth stood at ₹260.25 crore as of March 31, 2024. Key performance indicators include a Return on Equity (ROE) of -11.16%, a Return on Capital Employed (ROCE) of -2.35%, and a PAT Margin of -4.97%.

The company operates two manufacturing facilities located in Bagalkot, Karnataka, and Ahmednagar, Maharashtra. As of 30th June 2024, the company employs 1,583 permanent employees and serves customers in over twenty countries.

Read more about Godavari Biorefineries IPO

Highlights of the Godavari Biorefineries IPO

• IPO Date: 23rd October 2024 to 25th October 2024
• Listing Date: 30th October 2024 (Tentative)
• Face Value: ₹10 per share
• Price Band: ₹334 to ₹352 per share
• Lot Size: 42 Shares
• Total Issue Size: 15,759,938 shares (aggregating up to ₹554.75 Cr)
• Fresh Issue: 9,232,955 shares (aggregating up to ₹325.00 Cr)
• Offer for Sale: 6,526,983 shares (aggregating up to ₹229.75 Cr)
• Issue Type: Book Built Issue IPO
• Listing At: BSE, NSE
• Book Running Lead Managers: Equirus Capital Private Limited and SBI Capital Markets Limited
• Registrar: Link Intime India Private Ltd