Mumbai-based ethanol and bio-based chemicals maker, Godavari Biorefineries is looking to launch its initial public offering (IPO). 700 crores at the right time considering the geo-political situation.
Sameer Somaiya, CEO and Managing Director, Godavari Biorefineries Limited told PTI, “We have received the final comment from SEBI. IPO Requests during November-end (2021). We have one year to list. We will see the right time for listing.”
Pointing to the change in the geopolitical situation in the past few months, Somaiya told the news agency that “we will see how the geopolitical situation changes and if the time is right and the market is ready for listing once again, So we will plan the listing.”
The CEO said that the company has until November this year to list the public offering in the markets. He will join the IPO 370 crores as the primary offering.
However, sources told PTI that the cumulative size of the IPO will be over 700 crores from a mix of primary and secondary offerings.
Somaiya said that the proceeds from the IPO will be used for investment in Karnataka.
Presently, the company has two manufacturing sites namely Bagalkot (Karnataka) and Ahmednagar (Maharashtra) apart from Research and Development (R&D) units.
According to Somaiya, there is huge opportunity in green and sustainable chemistry. The company has started increasing the ethanol capacity from the current 380 kiloliters per day (KLPD) to 570 KLPD and is expected to be completed by November this year.
In addition, Somaiya said the company is in the “development stage” to manufacture second-generation ethanol and energy cane. Along with this, the company is also doing a lot of work on research.
“We have done a lot of work on second, third (generation) ethanol. We think the time will come for that (for second generation ethanol). We know how to do it and the gaps need to be filled. I will Says it is in development stage,” he said.
Godavari Biorefineries is one of the largest producers of ethanol and a leader in the manufacture of ethanol based chemicals in India. The company has a diversified product portfolio that includes bio-based chemicals, sugar, rectified spirits, ethanol, other grades of alcohol and power.
It is the only company in India to have such a vast portfolio of bio-based products and is also the largest manufacturer of MPO worldwide, one of only two manufacturers of natural 1,3 butylene glycol globally, the fourth largest of ethyl acetate. Big manufacturer. India, and is the only company in India that produces Bio Ethyl Acetate.