The OFS consists of sale of 5 lakh equity shares each by Samir Shantilal Somaiya and Somaiya Agencies, up to 49.27 lakh by Mandala Capital, up to 3 lakh equity shares by Filmedia Communication Systems, up to 1.31 lakh equity shares by Somaiya Properties and Investments and up to 2 lakh equity shares by Lakshmiwadi Mines and Minerals.
The company said that it is considering a pre-IPO placement of equity shares worth ₹100 crore. If this preferential sale is completed, the fresh issue size will be reduced to the extent of such pre-IPO placement, it added.
Godavari Biorefineries said that of the net proceeds from the IPO, ₹214 crore will be used for repayment or pre-payment, in full or in part, of certain borrowings availed by the company. It will utilise ₹44.84 crore to fund capital expenditure for expanding sugarcane crushing operations and ₹10.62 crore will be used to fund capital expenditure for the potash unit. The remaining proceeds will be used for general corporate purposes.
Godavari Biorefineries is one of the largest producers of ethanol and a pioneer in manufacturing ethanol-based chemicals in India, the DRHP stated. They have the largest integrated bio-refinery in the country, the document added.
It 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 produces bio ethyl acetate.
Equirus Capital and JM Financial are the book running lead managers for the initial public issue and Link Intime India is the registrar to the offer.
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