Ethanol and bio-based chemicals maker Godavari Biorefineries Ltd on Friday fixed a price band of Rs 334-352 per share for its Rs 555-crore Initial Public Offering (IPO), which will open for subscription on October 23.
The initial share sale will conclude on October 25 and the bidding for anchor investors will open for a day on October 22, the company announced.
The proposed initial share sale is a combination of fresh issue of equity shares worth Rs 325 crore and an Offer for Sale (OFS) of 65.27 lakh equity shares valued Rs 230 crore, at the upper end of the price band, by promoters and an investor. This translates into the total IPO size of Rs 555 crore.
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Private equity firm Mandala Capital AG Ltd is offloading 49.27 lakh shares through the OFS route.
Proceeds from the fresh issue to the tune of Rs 240 crore will be used for debt payment and the remaining amount for general corporate purposes.
The company market valuation has been pegged at Rs 1,800 crore at the upper end of the price band.
Half of the issue size has been reserved for qualified institutional buyers, 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.
The Maharashtra-based Godavari Biorefineries is one of the prominent manufacturers of ethanol-based chemicals in India. The company's diversified product portfolio comprises bio-based chemicals, sugar, different grades of ethanol and power. These products find application in a range of industries such as food, beverages, pharmaceuticals, flavours & fragrances, power, fuel, personal care and cosmetics.
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According to the Frost & Sullivan Report, the bio-based chemicals market has been growing exponentially owing to the increasing need for environmentally sustainable solutions. The market for bio-based chemicals in 2023 was valued at USD 97.2 billion, expected to be growing at a CAGR (compound annual growth rate) of 10.4 per cent, for the next five years from 2023 to 2028.
SBI Capital Markets and Equirus Capital Markets are the book running lead managers of the public issue.
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