Mumbai-based ethanol and bio-based chemicals maker, Godavari Biorefineries is looking to launch its initial public offering (IPO) aggregating to ₹700 crore at the right time while observing the geopolitical situation.
Godavari Biorefineries Ltd CEO and Managing Director Samir Somaiya told PTI that “We got Sebi’s final comments on our IPO request during November-end (2021). We have one year to get listed. We will look at the right time for the listing.”
Pointing out that the geopolitical situation has changed in the last few months, Somaiya said to the news agency that “We will see how the geopolitical situation changes and if the time is right and the market is once again ready for the listing, then we will plan the listing.”
The CEO stated that the company has till November this year to list the public offer on the markets. He stated that the IPO will comprise ₹370 crore as a primary offering.
However, sources told PTI that the cumulative size of the IPO would be over ₹700 crore from a mix of primary and secondary offerings.
Somaiya added that the proceeds from the IPO will be utilised for the investment in Karnataka.
At present, the company has two manufacturing sites namely Bagalkot (Karnataka) and Ahmednagar (Maharashtra) besides research and development (R&D) units.
As per Somaiya, there is a huge opportunity in green and sustainable chemistry. The company has begun expansion of ethanol capacity from the current 380 kilolitre per day (KLPD) to 570 KLPD and it is expected to be completed by November this year.
Also, Somaiya stated that the company is at a “development stage” for manufacturing second-generation ethanol and energy cane. Additionally, the company is also working much more on research.
“We have done a lot of work on 2nd, 3rd (generation) ethanol. We think the time for that will come (for the 2nd generation of ethanol). We know how to do it and gaps that need to be filled. I will say it is in the development stage,” he added.
Godavari Biorefineries is one of the largest producers of ethanol and a pioneer in manufacturing ethanol-based chemicals in India. The company has a diversified product portfolio comprising bio-based chemicals, sugar, rectified spirits, ethanol, other grades of alcohol, and power.
It is the only company in India to have such a vast portfolio of bio-based products and is also the largest manufacturer of MPO worldwide, one of only two manufacturers of natural 1,3 butylene glycol globally, the fourth largest manufacturer of ethyl acetate in India, and the only company in India to produce bio ethyl acetate.
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