Godavari Biorefineries Limited is being featured today on the second day of bidding for its Initial Public Offer (IPO). On the first day, subscribers actively engaged, resulting in a total subscription rate of 0.29 times for the issue. Retail investors showed interest by subscribing 0.52 times, while non-institutional investors (NII) subscribed 0.12 times.
Tomorrow i.e. October 25 is the last day to bid for this IPO. The company will list its shares on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on October 30.
Through this issue, the company wants to raise Rs 554.75 crore. For this, the company is issuing 9,232,955 fresh shares worth Rs 325 crore. Whereas, the existing investors of the company are selling 6,526,983 shares worth Rs 229.75 crore through an Offer for Sale i.e. OFS.
How much money can you invest at a minimum and maximum in Godavari Biorefineries?
Godavari Biorefineries Limited has fixed the price band of this issue at ₹334-₹352. Retail investors can bid for a minimum of one lot i.e. 42 shares. If you apply for 1 lot as per the upper price band of ₹352 of the IPO, then you will have to invest ₹14,784 for this.
At the same time, retail investors can apply for a maximum of 13 lots i.e. 546 shares. For this, investors will have to invest ₹192,192 as per the upper price band.
35% of the issue is reserved for retail investors
The company has reserved 50% of the issue for Qualified Institutional Buyers (QIB). Retail investors will receive about 35% of the allocation, while non-institutional investors (NII) will secure the remaining 15%.
Godavari Biorefineries Limited, established in 1956
Godavari Biorefineries, established in the year 1956, manufactures ethanol chemicals. According to data till June 2024, the company has a daily capacity of 570 kilolitres to produce ethanol. The company’s product portfolio includes bio-based chemicals, sugar, different types of ethanol, and power.
Industries such as food, beverages, pharmaceuticals, flavors and fragrances, power, fuel, personal care, and cosmetics actively use them. Godavari Biorefineries has two manufacturing facilities and three R&D facilities.
What is IPO?
When a company sells its shares to the general public for the first time, it is conducting an Initial Public Offering, or IPO. The company needs money to expand its business. In such a situation, instead of taking a loan from the market, the company raises money by selling some shares to the public or by issuing new shares. For this, the company brings IPO.
