Godavari Biorefineries IPO Day 3: Check latest subscription stats, grey market premium, and expert insights. Should you apply? Find out now!
Godavari Biorefineries is rolling out its IPO for ₹554.75 crore. This includes a fresh issue of 0.92 crore shares aimed at raising ₹325 crore and an offer for sale of 0.65 crore shares valued at ₹229.75 crore. The IPO opens for subscriptions between October 23 and October 25, 2024. Final allotments? Expected around October 28, 2024. Price range? Between ₹334 and ₹352 per share.
Godavari Biorefineries IPO Day 3: Latest Subscription Status, GMP, and Expert Analysis – Should You Apply?
The Godavari Biorefineries IPO day 3 has entered its third and final subscription day. Investors now have limited time to participate in this public offering, which opened on October 23, 2024. This IPO, aiming to raise ₹554.75 crore through a mix of new shares and an Offer for Sale (OFS), closes today. Here’s everything you need to know, including the current grey market premium (GMP), subscription numbers, and expert recommendations.
Understanding the Godavari Biorefineries IPO’s Potential
Godavari Biorefineries stands out in India’s industrial landscape as a major ethanol-based chemical producer, with products that cater to industries ranging from food and pharmaceuticals to fuel and personal care. This offering allows the company to not only raise capital for future projects and debt repayment but also strengthens its position in the expanding bio-chemicals market.
Godavari Biorefineries IPO GMP Today
As of Day 3, the grey market premium (GMP) for Godavari Biorefineries IPO stands at ₹15 per share. Although modest, this indicates a positive sentiment among market observers, hinting at a listing gain for those allotted shares.
What Does the GMP Mean?
The GMP represents how shares are trading in the unofficial market, showing investor interest before the actual listing. A premium like ₹15 signals a reasonable listing potential, though it’s not as high as some recent IPOs.
Day 3 Subscription Update: How Investors Are Responding
By the final day of bidding, Godavari Biorefineries IPO has garnered a moderate yet steady response across various investor categories:
- Qualified Institutional Buyers (QIBs): Subscribed 2.76 times, showing strong interest from large institutional players.
- Retail Investors: Subscribed 1.65 times, indicating active participation from individual investors.
- Non-Institutional Investors (NIIs): Subscribed 0.90 times, suggesting a more cautious response from high-net-worth individuals.
Total Subscription Status: By the close of Day 3, the IPO reached a 1.80 times overall subscription, indicating moderate demand from the market. QIBs have shown particular enthusiasm, likely driven by the long-term growth potential in the ethanol and bio-based chemicals sectors.
Day 1 and Day 2 Highlights
The first two days saw slower subscription rates, with retail and NII segments lagging. However, the final day picked up momentum, particularly among institutional buyers, bringing the overall subscription level to 1.80 times by the deadline.
Expert Analysis: Should You Consider Investing in Godavari Biorefineries IPO?
India’s ethanol market is poised for significant growth, with projections indicating a rise from USD 7 billion in 2023 to USD 17.5 billion by 2028. This sector expansion, driven by policies supporting ethanol blending in fuel, benefits companies like Godavari Biorefineries. Its integrated production model and varied product offerings enable the company to serve diverse market segments, creating a strategic edge.
Analyst View:
Prathamesh Masdekar from StoxBox recommends subscribing to the IPO, citing the company’s established market presence and diverse revenue sources. According to Masdekar, “Godavari Biorefineries has positioned itself as a leader in bio-based chemical manufacturing. The company’s cross-selling strategies and focus on innovative bio-products make it a solid choice for investors looking at sustainable industries.”
How to Check Your Godavari Biorefineries IPO Allotment Status
Once allotment details are finalized on October 28, here’s how you can check your allotment status:
- Through the Registrar’s Website:
- Visit the registrar’s site and select “Godavari Biorefineries” from the list.
- Enter your PAN, application number, or DP/Client ID, and submit.
- Alternatively, Check on BSE or NSE:
- Go to the BSE or NSE website, select “Equity” and then choose “Godavari Biorefineries.”
- Enter your application details and click “Search.”
These steps allow investors to confirm if they received an allotment and see the number of shares assigned.
Is Godavari Biorefineries IPO day 3 Right for You?
The Godavari Biorefineries IPO Day 3 provides an entry into the growing bio-chemicals sector, especially within the ethanol segment. While the GMP suggests moderate listing gains, the company’s strategic alignment with biofuel initiatives and its well-diversified product portfolio indicate substantial growth potential.
Does Godavari Biorefineries IPO have a gray market premium?
Well, the answer’s kinda murky. The Economic Times says the daily newspaper is now online. Despite low demand, the gray market still has action. Unlisted shares are going for just Rs 15 above the issue price. Not a big jump, right? The price range sits at Rs 334 to Rs 352 per share. Proceeds will settle some debts and go toward general corporate needs.
Is Godavari Biorefineries Ltd (GMP) trading higher than its issue price?
They provide stuff to giants like Hershey India, Coca-Cola Beverages, and LANXESS India. Their integrated biorefinery pumps out a whopping 570 KLPD. Seems impressive!
How much does Godavari Biorefineries offer?
Indian ethanol’s booming, projected to soar from USD 7 bn in 2023 to USD 17.5 bn by 2028. Godavari stands to gain big, especially in fuel additives and disinfectants.
Who is Godavari biorefinery?
The company’s future looks solid, bolstered by strong business performance and R&D initiatives. Sure, the high P/E ratio of 120.1x for FY24 might give some investors pause. But the growth potential and market trends are pretty enticing. All things considered, it’s a stock to watch.
Investment Summary
With a strong market position, strategic backing from institutional investors, and alignment with India’s biofuel goals, the Godavari Biorefineries IPO Day 3 presents a promising opportunity. For those interested in sustainable investments and sectors tied to renewable energy and chemicals, this IPO is worth considering for both potential listing gains and long-term returns.
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