Unlisted shares of Godavari Biorefineries Ltd are trading just Rs 15 higher in the grey market, signalling a 4.26 per cent listing gain from the public issue.
Godavari Biorefineries IPO: The initial public offering of ethanol and bio-based chemicals maker Godavari Biorefineries Ltd is going to be closed at 4:50 pm today. The IPO received 0.54 times subscription on the second day of bidding on Thursday. Now, till 11:33 am on the final day of bidding on Friday, the Rs 554.75-crore IPO received a 0.71 times subscription garnering 78,37,368 shares against 1,10,31,958 shares on offer.
Its retail quota has been subscribed by 1.26 times so far, while its non-institutional investor (NII) category received a 0.37 times subscription.
The grey market activity also indicates a muted 4.26% listing gain for investors on October 30.
The price band of the IPO has been fixed at Rs 334 to Rs 352 apiece.
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Godavari Biorefineries IPO GMP Today
According to market observers, unlisted shares of Godavari Biorefineries Ltd are trading just Rs 15 higher in the grey market than its issue price. The Rs 15 grey market premium or GMP means the grey market is expecting a 4.26 per cent listing gain from the public issue.
The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Godavari Biorefineries IPO: Key Dates
The Godavari Biorefineries IPO remained opened for public subscription between October 23 and October 25. The share allotment of the Godavari Biorefineries IPO will likely be finalised on October 28, while its shares will be listed on both BSE and NSE on October 30.
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Godavari Biorefineries IPO: Price Band and Lot Size
The price band of the Rs 554.75-crore IPO has been fixed at Rs 334 to Rs 352 per share for the public issue.
Investors can bid for 42 shares in one lot and in multiples thereoff.
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A day before the IPO, Godavari Biorefineries Ltd raised over Rs 166 crore from anchor investors on October 22.
The initial share sale is a combination of a fresh issue of equity shares worth Rs 325 crore and an offer-for-sale (OFS) of 65.27 lakh equity shares valued at Rs 230 crore at the upper end of the price band by promoters and an investor. This translates into the total IPO size of Rs 555 crore.
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Private equity firm Mandala Capital AG Ltd is offloading 49.27 lakh shares through the OFS route.
The price range for the offer is Rs 334 to Rs 352 per share.
Proceeds from the fresh issue to the tune of Rs 240 crore will be used for debt payment and the remaining amount for general corporate purposes.
Maharashtra-based Godavari Biorefineries is one of the prominent manufacturers of ethanol-based chemicals in India. The company’s diversified product portfolio comprises 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.
SBI Capital Markets and Equirus Capital are the book-running lead managers of the public issue.
