Godavari Biorefineries' IPO: A Gripping Opening Day

Godavari Biorefineries Ltd's IPO opened with a 27% subscription rate on its first day. The offer includes both fresh equity and an Offer-for-Sale, totaling ₹555 crore. Retail investors showed keen interest with a 48% subscription. Proceeds will aid debt payments and general corporate functions.

Godavari Biorefineries Ltd made a striking debut with its initial public offering (IPO) on Wednesday, achieving a 27% subscription rate on the first day of bidding. The IPO aims to raise Rs 555 crore with a combination of fresh equity shares and an Offer-for-Sale from promoters and investors.

Retail Individual Investors (RIIs) showed significant interest in the offering with a subscription rate of 48%, while non-institutional investors subscribed at 12%. The company has raised over Rs 166 crore from anchor investors prior to the IPO.

The funds from the fresh issue will primarily support debt reduction, as well as general corporate purposes, utilizing Rs 240 crore of the proceeds. Godavari Biorefineries, a leading ethanol-based chemical manufacturer in Maharashtra, provides products for industries ranging from food to pharmaceuticals.

(With inputs from agencies.)