NEW DELHI: Ethanol and bio-based chemicals maker Godavari Biorefineries Ltd said on Sunday it is monitoring the geopolitical situation and will make its stock market debut “at the right time”. Samir Somaiya, CEO and Managing Director of Godavari Biorefineries Ltd, told PTI that the company has already received final approval from market regulator Sebi for its initial public offering (IPO).
“We received Sebi’s final comments on our IPO application at the end of November (2021). We have one year to be listed. We will look for the right timing for the listing,” he said.
Somaiya explained that the geopolitical situation has changed in recent months: “We will see how the geopolitical situation changes and when the time is right and the market is ready for listing again, then we will plan the listing. ”
The company has until November of this year to list the IPO. Around Rs 370 crore would be the primary offering, he said.
However, sources said the cumulative size of the IPO would be over Rs 700 crore from a mix of primary and secondary offerings.
“The IPO funding will be used for the investments we are making in Karnataka,” Somaiya added.
Besides research and development (R&D) units, Godavari Biorefineries Ltd has two manufacturing plants – Bagalkot (Karnataka) and Ahmednagar (Maharashtra).
As there is tremendous opportunity in green and sustainable chemistry, Somaiya said the company has started expanding ethanol capacity from the current 380 kiloliters per day (KLPD) to 570 KLPD and will be completed by November this year.
The company is also in the “development phase” of manufacturing second-generation ethanol and energy pipe, he said.
“We work a lot more on research. We have worked a lot on 2nd, 3rd (generation) ethanol. We think the time will come (for 2nd generation ethanol). We know how to do it and we know how to fill in the gaps that need to be filled. I would say it’s in the development phase,” he added.
Recently, the company conducted a “Bhoomi Pujan” of a specialty chemical plant and opened a research laboratory in Ahmednagar.
Headquartered in Mumbai, Godavari Biorefineries exports both sugar and biochemicals. It has customers from over 20 countries.
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