Godavari Biorefineries makes disappointing market debut; declines 12.5%

New Delhi: Shares of ethanol and bio-based chemicals maker Godavari Biorefineries Ltd on Wednesday listed with a discount of 12.5 per cent against the issue price of Rs 352.

The stock made its debut at Rs 310.55, a decline of 11.77 per cent from the issue price on the BSE. It further lost 12.48 per cent to Rs 308.05.

At the NSE, shares of the firm listed at Rs 308, down 12.5 per cent.

The company's market valuation stood at Rs 1,750.47 crore.

The initial public offer of Godavari Biorefineries Ltd got subscribed 1.83 times on the last day of bidding on Friday.

The Rs 555-crore initial share sale had a price range of Rs 334-352 per share.

The initial share sale was a combination of a fresh issue of equity shares worth Rs 325 crore and an offer-for-sale (OFS) of 65.27 lakh equity shares valued at Rs 230 crore at the upper end of the price band by promoters and an investor.

Proceeds from the fresh issue to the tune of Rs 240 crore will be used for debt payment and the remaining amount for general corporate purposes.

Maharashtra-based Godavari Biorefineries is one of the prominent manufacturers of ethanol-based chemicals in India. The company's diversified product portfolio comprises bio-based chemicals, sugar, different grades of ethanol and power.

These products find application in a range of industries such as food, beverages, pharmaceuticals, flavours & fragrances, power, fuel, personal care and cosmetics.