Godavari Biorefineries IPO subscribed 54% on day 2

The initial public offer of ethanol and bio-based chemicals maker Godavari Biorefineries Ltd subscribed 54 per cent on day two of bidding on Thursday.

The initial share sale received bids for 60,89,832 shares against 1,12,74,739 shares on offer, as per NSE data.

The portion meant for retail individual investors (RIIs) received 96 per cent subscription, while the quota for non-institutional investors got subscribed 26 per cent.

Godavari Biorefineries Ltd on Tuesday said it has raised over Rs 166 crore from anchor investors.

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.

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.