Godavari Biorefineries Restricted is developing with an IPO measurement of Rs. 554.75 crore. The corporate goes for a mixture of contemporary shares of Rs. 325 crore and offer-for-sale of Rs. 229.75 crore, which can open on twenty third October 2024. The difficulty will shut on twenty fifth October 2024 and be listed on the inventory alternate on thirtieth October 2024. On this article, we are going to discover the evaluation of Godavari Biorefineries Restricted IPO. Let’s dig in!
Godavari Biorefineries Restricted – IPO Info
Godavari Biorefineries Restricted’s GMP has not began but; we are going to replace this text later.
Promoter: Samir Shantilal Somaiya, Lakshmiwadi Mines and Minerals Non-public Restricted, Sakarwadi Buying and selling Firm Non-public Restricted, and Somaiya Businesses Non-public Restricted
E-book Operating Lead Supervisor: Equirus Capital Non-public Restricted, SBI Capital Markets Restricted Registrar to the Provide: Hyperlink Intime India Non-public Restricted
The Goal Of The Concern
● Rs. 240 crore is used for compensation and prepayment of sure excellent borrowings of the corporate.
● The remaining will probably be used for normal company functions
Firm Overview of Godavari Biorefineries Restricted IPO
Godavari Biorefineries Restricted was established in 1956 and is a number one producer of ethanol-based chemical substances in India. The corporate operates an built-in biorefinery with a capability of 570 KLPD for ethanol manufacturing as of June 30, 2024. Notably, it’s the largest international producer of MPO and the one Indian producer of bio ethyl acetate.
The corporate’s numerous product portfolio consists of bio-based chemical substances, sugar, varied grades of ethanol, and energy. These merchandise cater to industries equivalent to meals, drinks, prescription drugs, flavours and fragrances, energy, gas, cosmetics, and private care. Godavari Biorefineries serves shoppers in over 20 international locations, together with Australia, China, Germany, France, Italy, Japan, Kenya, the Netherlands, Singapore, and the US.
The corporate has solely two manufacturing services positioned in Bagalkot, Karnataka, and Ahmednagar, Maharashtra, Godavari Biorefineries employs 1,583 everlasting workers, together with 52 analysis personnel. The corporate has secured 18 patents and holds 53 registrations for its merchandise throughout a number of international locations as of October 2024.
Monetary Evaluation of Godavari Biorefineries Restricted IPO
Coming into the monetary evaluation of Godavari Biorefineries Restricted, the corporate’s income has decreased from 2,014.69 crore in FY23 to 1,686.67 crore in FY24, which is down by 16.28%. Godavari Biorefineries Restricted has earned income of 522.53 crore in Q1 of FY25.
The corporate has earned income from sugar by 33.42%, bio-based chemical substances by 29.97%, Distillery by 33.30%, cogeneration by 2.54%, and unallocated by 0.76% in FY24. The corporate has made income from India by 83.35% and out of doors India by 16.65%
Godavari Biorefineries Restricted’s internet revenue has decreased by 37.37%, which is from 19.64 crore in FY23 to 12.3 crore in FY24. In Q1 of FY25, the online lack of the corporate is to be
26.11 crore. Godavari Biorefineries Restricted’s EBITDA margin has elevated from 7.67% in FY23 to eight.77% in FY24. The PAT margin has declined from 0.97% to 0.72% in FY24.
In FY24, the corporate ROE and ROCE must be 4.73% and 9.53%, respectively. The corporate elevated complete borrowings from Rs. 654.06 crore in March 2024 to Rs. 693.70 crore in June 2024.
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Consumer Base:
Godavari Biorefineries Restricted’s shopper base consists of marquee gamers equivalent to Hershey India Pvt Ltd, Hindustan Coca-Cola Drinks Non-public Restricted, M/s Karnataka Chemical Industries, M/s Techno Waxchem Pvt Ltd, LANXESS India Non-public Restricted, IFF Inc., Ankit Raj Organo Chemical compounds Restricted, Escorts Chemical Industries, Khushbu Dye Chem Pvt Ltd, Privi Speciality Chemical compounds Restricted, Shivam Industries, and main oil advertising firms.
Listed Friends of the corporate:
Godavari Biorefineries Restricted’s peer opponents are Alkyl Amines Chemical compounds Restricted, Jubilant Ingrevia Restricted, Laxmi Natural Industries Restricted, EID Parry (India) Restricted, Triveni Engineering and Industries Restricted, Balrampur Chini Mills Restricted, Dalmia Bharat Sugar & Industries Restricted, Dhampur Sugar Mills Restricted, and Dwarikesh Sugar Industries Restricted
The beneath pictures present the comparability of peer opponents of Godavari Biorefineries Restricted
Strengths of Godavari Biorefineries Restricted
● The corporate has a diversified product portfolio that produces ethanol, chemical substances, and energy. Bio-chemicals contribute considerably to its income combine, particularly bio-ethyl acetate.
● Godavari Biorefineries Restricted has a long-standing historical past, enhancing its credibility and belief amongst clients and traders within the biorefinery sector.
● Godavari’s various product choices cater to a number of industries, offering resilience in opposition to market fluctuations and creating quite a few avenues for income technology. ● Godavari Biorefineries Restricted exports to greater than 20 international locations, with 17% of revenues from worldwide gross sales in FY 2023.
● The corporate advantages from the Somaiya Group’s 80+ years of experience. Its management anticipates traits and guides expansions successfully.
Weaknesses of Godavari Biorefineries Restricted
● The corporate’s robust home and worldwide footprint is comparatively small, limiting entry to broader markets and potential progress alternatives. ● The complexity of biorefinery processes leads to elevated manufacturing prices, which can influence profitability and pricing methods in comparison with typical fuels. ● Fluctuations in uncooked materials costs can have an effect on operational stability, making the corporate susceptible to provide chain disruptions and market volatility.
● Dependence on agricultural inputs makes the corporate prone to climate-related disruptions that might hinder manufacturing capabilities and provide chains
Conclusion:
In conclusion, Godavari Biorefineries Restricted plans to boost capital via its IPO, specializing in ethanol-based manufacturing. The corporate’s financials are secure, however latest income decline raises considerations. Regardless of this, their diversified product vary, particularly in bio-based chemical substances, strengthens the expansion outlook. The IPO is timed to capitalize on the rising ethanol demand, positioning it as a major participant within the ethanol sector.
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