Godavari Biorefineries Limited IPO

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Godavari biorefineries limited is a leading manufacturer of ethanol-based chemicals in India, operating as an integrated bio-refinery with an installed capacity of 570 KLPD for ethanol production as of June 30, 2024. As one of India’s largest ethanol producers by volume, they also hold the distinction of being the world’s largest manufacturer of MPO by installed capacity and one of only two producers of natural 1,3 butylene glycol. Additionally, they are the only company in India manufacturing bio-ethyl acetate and have set up the country’s first bio-based EVE manufacturing facility.

Their diversified product portfolio includes bio-based chemicals, sugar, various grades of ethanol, and power, serving industries such as food, beverages, pharmaceuticals, flavors & fragrances, power, fuel, personal care, and cosmetics. Among their peers, they offer the most extensive range of bio-based products in India, according to the Frost & Sullivan Report.

They utilize sugarcane as their primary feedstock to produce a wide range of products, including sugar, ethanol, bio-based chemicals, and power. As pioneers in using sugarcane juice and syrup for ethanol production, they continually strive to increase the valorization of sugarcane by developing downstream products and shifting a greater portion of sugarcane towards high-value outputs. Their bio-based chemical portfolio includes products such as ethyl acetate, bio-ethyl acetate, MPO, 1,3 butylene glycol, crotonaldehyde, acetaldehyde, bio-acetic acid, butanol, EVE, and paraldehyde. They are also exploring the production of grain-based ethanol to further diversify their offerings.

Objects of the Godavari Biorefineries Limited IPO:

The Company intends to utilise the Net Proceeds from the Fresh Issue towards funding the following objects (the"Objects"): i .Repayment/pre-payment, in full or in part, of certain outstanding borrowings availed by our Company; and ii. General corporate purposes. Total number of share issue:- i. Fresh issue is 9,232,955 shares, ii. Offer for sale is 6,526,983 shares.
DRHP of Godavari Biorefineries Limited IPO
RHP of Godavari Biorefineries Limited IPO

Godavari Biorefineries Limited IPO Details:

Open Date: Oct 23 2024
Close Date: Oct 25 2024
Total Shares: 15,759,938
Face Value: ₹ 10 Per Equity Share
Issue Size: 554.75 Cr.
Lot Size: 42 Shares
Issue Price: ₹ 334 - 352 Per Equity Share
Listing At: NSE,BSE
Listing Date: Oct 30 2024

Promoters And Management:

Samir Shantilal Somaiya is the Chairman and Managing Director of the company, with over 28 years of experience in the chemicals industry. He holds a bachelor's degree in science, a master's in chemical engineering and business administration from Cornell University, and a master's in public administration from Harvard University. Prior to joining the company, he was Managing Director at Somaiya Organo-Chemicals Limited. He has received numerous awards, including the Lala Shriram National Award for Leadership in the Chemical Industry (2022), Knight of the Order of the Star of Italy (2022), and the Qimpro Gold Standard Award for Education (2023). Sangeeta Arunkumar Srivastava is an Executive Director of the company. She holds a bachelor's and master's degree in science from Doctor Harisingh Gour Vishwavidyalaya, a master's in philosophy in chemistry from Rani Durgavati Vishwavidyalaya, and a Ph.D. in science from the University of Mumbai. With over 29 years of experience in research and development, she previously served as General Manager (Corporate R&D) at Somaiya Organo-Chemicals Limited. Bhalachandra Raghavendra Bakshi is an Executive Director of the company. He holds a bachelor's degree in agriculture from the University of Agricultural Sciences, Bangalore, and has been with the company since January 1, 2011. He brings several years of experience in the agricultural industry, contributing in various capacities during his tenure.

Financials of Godavari Biorefineries Limited IPO:

Particulars For 3 months ended June 30, 2024 FY 2023-24 FY 2022-23 FY 2021-22
Revenue 522.52 1,686.66 2,014.69 1,702.32
Export (% of Revenue) 15.24% 16.65% 19.97% 22.81%
EBITDA (9.49) 147.93 154.61 140.53
EBITDA Margin (1.82%) 8.77% 7.67% 8.25
PAT (26.10) 12.29 19.63 19.09
PAT Margins (5%) 0.73% 0.97% 1.12%
CFOA (14.47) 185.66 196.96 44.86

Comparison With Peers:

Companies Revenue EBITDA PAT MCap P/E
Godavari Biorefineries (FY 2024) 1,686.66 Cr. 147.93 Cr. 12.29 Cr. 1801 Cr. 146
Alkyl Amines Chemicals Limited (TTM) 1,431 Cr. 270 Cr. 148 Cr. 10,786 Cr. 72.90
Jubilant Ingrevia Limited (TTM) 4,085 Cr. 450 Cr. 174 Cr. 11,373 Cr. 65.30
Laxmi Organic Industries Limited (TTM) 2,856 Cr 286 Cr. 117 Cr. 7,154 Cr. 61.40
EID Parry (India) Limited (TTM) 29,133 Cr. 2,767 Cr. 1,519 Cr. 13,548 Cr. 15.40
Triveni Engineering and Industries Limited (TTM) 5,323 Cr. 649 Cr. 359 Cr. 8,706 Cr. 24.30
Balrampur Chini Mills Limited (TTM) 5,626 Cr. 992 Cr. 531 Cr. 12,323 Cr. 23.20
Dalmia Bharat Sugar & Industries Limited (TTM) 3,026 Cr. 539 Cr. 266 Cr. 3,801 cr 14.30
Dhampur Sugar Mills Limited (TTM) 1,890 Cr. 229 Cr. 91 Cr. 1295 Cr. 14.30
Dwarikesh Sugar Industries Limited (TTM) 1,480 Cr. 142 Cr. 33 Cr. 1,221 Cr. 36.80

Recommendation on Godavari Biorefineries Limited IPO:

Review and Recommendation of Godavari Biorefineries by team IZ is 3/10.

Lead Manager of Godavari Biorefineries Limited IPO:

  1. Equirus Capital Private Limited
  2. SBI Capital Markets Limited

Registrar of Godavari Biorefineries Limited IPO:

  1. Link Intime India Private Limited

Company Address:

Godavari Biorefineries Limited Somaiya Bhavan, 45/47, M.G. Road Fort, Mumbai - 400001 Phone: +91 22 6170 2177 Email: investors@somaiya.com Website: https://www.godavaribiorefineries.com/

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