Link: https://cdn.equiruswealth.com/ecpl/uploads/2024/06/Godavari-Biorefineries-Limited-DRHP.pdf

Bengaluru, June 17, 2024: Godavari Biorefineries Limited (“The Company” or “GBL”) one of the prominent manufacturers of ethanol based chemicals in India has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”).

As on March 31, 2024, the Company has the largest integrated bio-refinery in India in terms of installed capacity and were also the largest manufacturer of MPO (3 Methyl-3 Penten-2-One) worldwide in terms of installed capacity, one of only two manufacturers of natural 1,3 butylene glycol and the only company in India to manufacture bio ethyl acetate according to Frost & Sullivan Report.

The Company plans to raise fund through Equity Share Capital of face value ₹ 10 each. The total issue comprises of fresh issue of equity share aggregating up to ₹ 3,250 million [₹ 325 crore] ”) and offer for sale of up to 6,526,983 Equity Shares. (“Offer For Sale”) [“Total Offer Size”]

Company plans to utilized the net proceeds from fresh issue towards funding (i) Repayment/pre-payment, in full or in part, of certain outstanding borrowings availed by the Company amounting to ₹ 2,400 million [ ₹ 240 crore] and balance amount towards general corporate purpose. [“Fresh Issue”]

The Offer for Sale comprises of up to 4,926,983 Equity Share by Mandala Capital AG Limited [Investor Selling Shareholders], up to 500,000 Equity Shares by Somaiya Agencies Private Limited, up to 2,00,000 Equity Shares by Samir Shantilal Somaiya, up to 200,000 Equity Shares by Lakshmiwadi Mines and Minerals Private Limited [Promoter Selling Shareholders], up to 300,000 Equity Shares by Filmedia Communication Systems Private Limited, up to 100,000 Equity Shares by Somaiya Properties and Investments Private Limited [Promoter Group Selling Shareholders]. [“The Selling Shareholders”]

Equirus Capital Private Limited and SBI Capital Markets Limited are the Book Running Lead Managers to the IPO. [“BRLMs”]

According to Frost & Sullivan Report the Company has set up India’s first bio-based EVE (Ethyl Vinyl Ethers) manufacturing facility in India as on March 31, 2024 and is poised to capitalize on the import substitution opportunity for EVE in India.

The India market size for the EVE market was approximately 1,258 MT in 2023. Looking forward, the market is expected to grow at a CAGR of 10.0%, reaching to 2,026 MT by 2028. The rise in demand was driven by growing demand from the pharmaceuticals & agrochemicals sector.

About Company:

Godavari Biorefineries Limited diverse portfolio comprises of 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.

According to Frost & Sullivan Report, the Company is one of India’s largest producers of ethanol in terms of volume as of March 31, 2024 with an installed capacity of 570 KLPD as at March 31, 2024. The Company customer include marquee players such as Hershey India Pvt Ltd, Hindustan Coca-Cola Beverages Private Limited, M/s Karnataka Chemical Industries, M/s Techno Waxchem Pvt Ltd, LANXESS India Private Limited, IFF Inc., Ankit Raj Organo Chemicals Limited, Escorts Chemical Industries, Khushbu Dye Chem Pvt Ltd, Privi Speciality Chemicals Limited, Shivam Industries, as well as major oil marketing companies.

Over the years, the company has significantly expanded its scale of operations and global footprint, and during Fiscals 2024, 2023 and 2022, it has catered to customers from over 20 countries including Australia, China, Germany, France, Italy Japan, Kenya, Netherlands, Singapore, United Kingdom, United Arab Emirates, Indonesia and United States of America

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