Ethanol and bio-based chemicals maker Godavari Biorefineries Ltd on Saturday filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO).
Godavari Biorefineries Ltd., a producer of biobased chemicals and ethanol, submitted preliminary paperwork to capital markets regulator Sebi on Saturday in an effort to seek money through an initial public offering (IPO).
According to the draft red herring prospectus (DRHP), the planned initial share-sale consists of an offer for sale (OFS) of 65.27 lakh equity shares by promoters and an investor, along with a fresh issue of equity shares worth Rs 325 crore.
Mandala Capital AG Ltd, a private equity firm, is selling 49.27 lakh shares via the OFS.
A total of Rs 240 crore of the latest issue’s proceeds will be applied to debt repayment, with the remainder sum going toward general corporate objectives.
The company offers a diverse range of products, including power, sugar, various grades of ethanol, and bio-based chemicals. Numerous industries, including food, drink, pharmaceuticals, flavors and fragrances, electricity, fuel, personal care, and cosmetics, use these items.
The market for bio-based chemicals has reportedly been expanding rapidly due to the growing demand for ecologically friendly solutions, according to the Frost & Sullivan Report. The market for bio-based chemicals was estimated to be worth USD 97.2 billion in 2023. Over the following five years, from 2023 to 2028, it is projected to increase at a compound annual growth rate (CAGR) of 10.4%.
The public issue’s book running lead managers are Equirus Capital Markets and SBI Capital Markets.