In this article,we will discuss about Godavari Biorefineries share price target 2024 to 2030, IPO details, fundamentals, future plans and challenges based on the financials of the company and various reports by brokerage firms.
Table of Contents
IPO Details
A leading integrated sugar and biorefinery company in India, Godavari Biorefineries Limited, has announced its initial public offering (IPO) in the price band of Rs 800 – Rs850 per share. The fresh issue of shares worth Rs 650 crore and OFS of Rs 400 crore is expected to mop up Rs 1,000 crore. Listing is open from 23rd October to 25th October 2024.
The IPO listing of the company is scheduled for October 27, 2024, on both BSE and NSE. The funds raised will be used for expansion of capacity, repayment of debt, and other general corporate purposes.
| Bidding Dates | 23 Oct – 25 Oct |
| Price Range | Rs 334 – Rs 352 |
| Lot Size | 42 |
| Minimum Investment | 14,028 Rs |
| Issue Size | 554.75 Cr |
Subscription Status-
Godavari Biorefineries IPO subscribied as of 25 Oct’24 till 4:00 PM described below-
| Qualified Institutional Buyers | 2.76x |
| Non-Institutional Investor | 0.88x |
| Retail Individual investor | 1.61x |
| Total | 1.77x |
Industry Overview
In India, the biorefinery industry is gaining ground because of the popularity of the diversification of the sources of energy. The growth of the biorefinery in India is gaining on the back of the support extended by the Government of India for ethanol blending programs and renewable energy policies.
Godavari Biorefineries are expected to prosper with increasing demand for sustainable and renewable products that are also becoming more environmentally conscious. This space is also further bolstered by the eco-friendly practices globally and the pressure for green energy solutions, which are significant leverages for the industry and hence are essential in achieving India’s renewable energy target.
Company Overview
Godavari Biorefineries Limited is a pioneer in the biorefinery industry in India, and it is an integrated business model for the production of sugar, ethanol, and other biochemicals. Their product line offers foods and beverages, pharmaceuticals, and chemicals. Explained Godavari Biorefineries, ‘At Godavari Biorefineries, we always try to do the right thing and always try to produce high-quality products that have been sustainably produced.’
The company uses its advanced manufacturing facilities and innovative technologies to continue to stay competitive. However, Godavari Biorefineries is well positioned to profit from the increased demand for all renewable energy solutions with a commitment to sustainability and continuous improvement.
Financials
The Godavari Biorefineries have shown excellent financial performance in terms of growth, in terms of revenue and profitability, consistent. In FY2024, the company reported total borrowings of Rs 450 crore, which gave a debt/equity ratio of 0.5x and an interest coverage ratio of 12x.
The company’s efficient capital management and strong balance sheet reflect the operation efficiency as well as the market needs of the products of the company.
Net-Profit Margin
| Year | Revenue | Profit |
|---|---|---|
| 2024 | 1.686.66 Cr | 12.30 Cr |
| 2023 | 2,014.69 Cr | 19.64 Cr |
| 2022 | 1,702.33 Cr | 19.10 Cr |
Godavari Biorefineries share price target 2024
The company is investing continuously to fund research and development. Continuing this innovation lets Godavari Biorefineries adapt to the changing market needs and trends and continue to remain competitive.
Godavari Biorefineries share price target 2025
We have a large number of favorable government-led policies, and one of them is government support toward ethanol blending and renewable energy. Such backing allows the company to work through the regulatory environment and apply for subsidies and incentives.
Godavari Biorefineries share price target 2026
There is substantial capital investment in the biorefinery industry. The company’s capital expenditure can also be very high if the market does not give an immediate return. This aspect shows why strategic financial management is essential.
Godavari Biorefineries share price target 2030
The company is also keen on building upgraded research and development competence to create new products to meet changing marketplace demands. Diversifying revenue streams and risk mitigation from reliance on the domestic markets lie with expansion into international markets.
Strengths of Godavari Biorefinery:
- Integrated Business Model: This cuts down the company from sole reliance on a single revenue stream and allows it to produce an assortment of products. It is possible to stabilize income by being able to shift focus between different products.
- Sustainable Practices: Being sustainable and using renewable resources and environmentally friendly processes are our commitments. The efforts not only build a brand image but are in line with the global movement of eco-friendly practices.
- Diversified Product Portfolio: It is a company with steady revenue, and it serves industries like food and beverages, pharmaceuticals, and chemicals. It diversifies risk and cushions against one single sector being critical to any company.
Weaknesses of Godavari Bio-refineries:
- High Dependence on Sugar: However, the sugar industry is a hugely volatile, highly regulated sector of great importance for revenues.
- Market Volatility: It is influenced by price fluctuations of raw materials, exchange rates of the currencies, and global economic conditions that a company undergoes financial performance. Some factors introduce a level of unpredictability of operational costs and revenue.
- Regulatory Risks: The company is highly affected by changes in government policies and regulations. The regulatory framework that dominates the biorefinery sector is highly vulnerable to policy shifts.
Future Plans
To help drive future growth and position itself at the top of the biorefinery sector, Godavari Biorefineries has outlined a strategic roadmap. The increasing demand for ethanol blending in India will be met by the company’s expansion into ethanol production capacity. In addition to helping the biochemicals segment, Godavari Biorefineries plans to explore new opportunities related to the properties of renewable resources.
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Conclusion
Invest in the renewable energy sector and buy the Godavari Biorefineries IPO at a glance. With such an integrated business model, commitment to sustainability, an eclectic product portfolio, and a strong financial position, the company is a promising player in the biorefinery industry. But before investing, investors must take the risk that the price of the business or the market could be volatile and that regulatory conditions might change the investment decision.
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Disclaimer: I am not a SEBI-registered investment adviser or research analyst. The information shared is only for educational purposes. This is not investment advice.
FAQs
Is Godavari Bio-refineries going to be a multi-bagger?
It isn’t easy to forecast precisely, but the strong market position, growth plans, and favorable industry dynamics of Godavari Bio-refineries mean that if it executes its strategies and if there is further industry growth, it could be a multibagger.
Is Godavari Bio-refineries a debt-free company?
Godavari Bio-refineries is not 100 percent debt-free. Total borrowings of the company comprise Rs 450 crores as of FY2024.
Is Godavari Bio-refineries a profitable firm?
Absolutely, Godavari Bio-refineries has always been profitable—its income has increased, and profitability is consistently high, showing its operational efficiency and matching demand for its products in the market.
How much should Godavari Bio-refineries be listed for?
Taking into consideration the strong demand and favorable market sentiment for the issue, Godavari Bio-refineries’ expected listing price is probably going to come near the upper end of the price band.
Godavari Bio-refineries’ gray market price?
While the data is as late as the IPO, it is already two offers above the greys of Godavari Bio-refineries at Rs 860 apart, suggesting solid speculators’ enthusiasm and a favorable market imagination about forthcoming IPO ebb and flow.