Godavari Biorefineries IPO: Check what Anil Singhvi suggests for this issue
After Waaree Energies IPO has broken the record set by the likes of Bajaj Housing Finance, Tata Technologies and LIC IPO in respect of the number of applications received, Godavari IPO is garnering a weak response.
Godavari Biorefineries IPO: The Rs 554.75 crore issue of Godavari Biorefineries is currently open for public subscription. So far on the second bidding day, the issue was booked just 0.48 times by 2:12 pm. Check what market market wizard Anil Singhvi suggested for the issue.
Godavari Biorefineries IPO- Investors with high-risk appetite should only apply
Godavari Biorefineries IPO: Zee Business Managing Editor Anil Singhvi said that only investors with a high-risk appetite should subscribe to the IPO, and that too from a long-term perspective of 2-3 years.
Godavari Biorefineries IPO- Positives
The expert highlighted the below positives of the issue:
-Experienced promoters
- The company is seen to benefit from the repayment of debt by utilising the IPO proceeds
- Strong ethanol and bio-chemical story
Godavari Biorefineries IPO- Negatives
Further highlighting the negatives of the issue, Singhvi said,
- The issue commands a reasonable valuation that is not very attractive.
- During Q1FY25, the company posted a loss of Rs 26.1 crore.
- Capacity utilisation is low at 47 per cent.
- Also, the company is facing the wrath of frequent change in government policies.
Godavari Biorefineries IPO- Muted respone so far on 2nd bidding day
At around 2:40 pm, the issue of Godavari Biorefineries was subscribed barely 0.48 times, with a major subscription of as much as 0.87 times by the retail investor categpry.
Godavari Biorefineries IPO- Issue details
The Rs 554.75 crore book built issue is a combination of a fresh issue of 0.92 crore shares aggregating to Rs 325 crores and offer for sale of 0.65 crore shares worth Rs 229.75 crores.
Godavari Biorefineries IPO: Expected Allotment Date
The basis of allotment is expected to be finalised on October 28, 2024.
Godavari Biorefineries IPO: Expected listing Date
Godavari Biorefiners is expected to make its stock market debut on the BSE and NSE on October 30, 2024.
Godavari Biorefineries IPO: About the company
Incorporated in, 1956, the company is into the manufacturing of ethanol-based chemicals and an integrated bio-refinery in India with an installed capacity of 570 KLPD (kilo litres per day) for ethanol manufacturing as of June 30, 2024.