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Shares of Godavari Biorefineries were listed on the National Stock Exchange (NSE) at Rs 308, 12.5% lower than the issue price. The company’s listing price on the Bombay Stock Exchange (NSE) fell 11.78% to Rs 310.55.
Kanpi has set the price range for this issue at Rs 352. As of the last day of bidding, the total number of subscriptions was 1.83 times.
Godavari Biorefinery issues bonds worth Rs 554.75 crore
The total investment in the Godavari Biorefinery in this phase is Rs 5,547.5 crore. For this purpose, the company issued 92,32,955 new equity shares worth Rs 325 crore. Existing investors of the company sold 6,526,983 shares worth Rs 229.75 crore through an offer for sale (OFS).
The company has reserved 50% of the offering for qualified institutional investors (QIBs), about 35% for retail investors and the remaining 15% for non-institutional investors (NIIs).
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. As per the IPO price cap of Rs 352, investors can invest Rs 14,784 in 1 lot.
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.
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.