As the Godavari Biorefineries IPO enters its third day of bidding on October 25, 2024, investors are keenly observing its performance. This article provides an overview of the IPO’s grey market premium (GMP), subscription status, and whether investors should consider applying for shares.
Godavari Biorefineries IPO Details
The initial public offering (IPO) of Godavari Biorefineries Limited opened for bidding on October 23, 2024, and will remain open until October 25, 2024. The company has set the IPO price band at ₹334 to ₹352 per equity share. The public issue aims to raise approximately ₹554.75 crore, with ₹325 crore intended through the issuance of fresh shares.
- IPO Price Band: ₹334 to ₹352
- Issue Size: ₹554.75 crore
- Fresh Issue: ₹325 crore
- Offer for Sale (OFS): Includes existing equity shares
Current Subscription Status
As of the latest updates, the subscription status for the Godavari Biorefineries IPO has shown a lukewarm response from investors:
- Overall Subscription: 0.54 times
- Retail Portion: 0.96 times
- Non-Institutional Investors (NII): 0.26 times
This indicates that while retail investors are showing some interest, the overall demand remains below expectations.
Godavari Biorefineries IPO GMP
The grey market premium (GMP) for Godavari Biorefineries shares is currently at ₹27, suggesting that the market anticipates a listing gain of ₹27 per share upon its debut. This figure reflects investor sentiment in the grey market, which can often differ from actual market performance post-listing.
Expert Opinions on Investment
Positive Outlook from Analysts
Several analysts have provided insights into whether investors should apply for this IPO:
- Prathamesh Masdekar, Research Analyst at StoxBox, recommends a “subscribe” tag for the Godavari Biorefineries IPO. He highlights the company’s strong position as a prominent ethanol-based chemical manufacturer in India, with a diverse product portfolio that includes bio-based chemicals, sugar, ethanol, and power. The anticipated growth in the Indian ethanol market positions Godavari favorably for future expansion.
- Mahesh M Ojha, AVP — Research at Hensex Securities, also assigns an “apply” tag, noting the company’s established relationships with a diverse customer base and its potential to benefit from rising ethanol demand. He emphasizes that proceeds from the IPO will help reduce debt and strengthen the company’s balance sheet.
Key Dates to Remember
- IPO Allotment Date: Expected on October 26, 2024
- Credit to Demat Accounts: Likely on October 29, 2024
- IPO Listing Date: Scheduled for October 30, 2024
Conclusion: Should You Apply?
Given the current grey market premium and expert recommendations, investors looking for exposure in the ethanol sector may consider applying for shares in Godavari Biorefineries. However, potential investors should weigh their options carefully based on their risk appetite and investment strategy.
Disclaimer: The information provided in this article is for informational purposes only and should not be considered investment advice. Investors are encouraged to conduct their own research or consult with financial professionals before making any investment decisions regarding stocks or other securities.
This overview aims to equip investors with essential insights into the Godavari Biorefineries IPO as it prepares for its market debut while emphasizing informed decision-making in investing.
