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Today is the second day of bidding for the initial public offering (IPO) of Godavari Biorefineries Ltd. A total of 0.29 people subscribed on the first day of this issue. The issue was subscribed 0.52 times in the retail category and 0.12 times in the non-institutional investor (NII) category.
Tomorrow, October 25, is the last day for bidding on this IPO. The company’s shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on October 30.
The company hopes to raise Rs 55,475 crore through the issue. For this purpose, the company will issue 9,232,955 new equity shares worth Rs 325 crore. However, the company’s existing investors are selling 6,526,983 shares worth Rs 229.75 crore through an offer for sale, or OFS.
If you are also planning to invest, then we will tell you how much you can invest.
What is the minimum and maximum amount that can be invested?
Godavari Biorefineries Limited has fixed the price range for the issue at Rs 334 to Rs 352. Retail investors can bid for at least 1 lot, which is 42 shares. If you apply for 1 lot as per the IPO price cap of Rs 352, then you will need to invest Rs 14,784.
At the same time, retail investors can apply for up to 13 lots, or 546 shares. For this, the investor has to invest Rs 192,192 as per the cap.
35% of the issuance is reserved for retail investors
The company has reserved 50% of the offering for qualified institutional buyers (QIBs). In addition to this, about 35% of the shares are reserved for retail investors and the remaining 15% for non-institutional investors (NII).
Godavari Biorefinery Limited was established in 1956
Godavari Biorefineries was established in 1956 to produce ethanol chemicals. Based on data as of June 2024, the company’s ethanol production capacity is 570 kiloliters per day. The company’s product portfolio includes bio-based chemicals, sugar, different types of ethanol, and electricity.
They are used in industries such as food, beverage, pharmaceutical, flavors and fragrances, power, fuel, personal care and cosmetics. Godavari Biorefinery has two production facilities and three R&D facilities.
What is an initial public offering?
When a company issues stock to the public for the first time, it’s called an initial public offering, or IPO. The company needs funds to expand its business. In this case, instead of borrowing from the market, the company raises money by selling part of its stock to the public or by issuing new shares. To this end, the company conducted an initial public offering.