The era of back-to-back IPOs
Back to back IPOs are coming, and as an investor or trader, it is our duty to invest in only those that can give us listing gains. 20 things have been placed in front of you, but you will not say that “invest in this, invest in that.”
Check for listing gains
Number one, you will check in which there is listing gain. Number two, you will check in which allotment is possible. Number three, you will check that your funds are limited. You have to work accordingly.
Godavari Bio Refinery IPO
Now, the IPO of Godavari Bio Refinery has come. We have to see which sector it belongs to, whether it will be a short term or long term play, and what are its financials. Only after knowing all this, should we apply or not.
My introduction
Hi everyone, my name is Vibhor Vasne. I am a SEBI registered research analyst. On our channel we talk about a lot of things: breakout stocks, momentum strategies, inside bars, and now let’s discuss another IPO.
Important Dates
The IPO is opening on the 23rd and will close on the 25th. If allotments are handed over and refunds are paid on 24th, it will be a good sign.
Financials Review
Godavari Bio Refinery Limited manufactures ethanol-based chemicals. As of June 30, 2023, the company operates an integrated bio refinery with a capacity of 570 KLPD. The company is the largest producer of MPO.
Client Base
The company’s clients include Hershey’s, Hindustan Coco-Cola, and Techno Wax. All of them are in the B2B business, which is a good sign.
Analysis of Financials
The financials show a decline in assets, which is concerning. The profit is only 19 crores on sales of 1700 crores.
Conclusion
Considering all these facts, I am not going to invest in the Godavari Bio Refinery IPO. The risk-reward ratio does not seem to be good for listing gains.
FAQs on GoDawari Bio Refinery IPO
1. What is the GoDawari Bio Refinery IPO?
The GoDawari Bio Refinery IPO is an initial public offering for GoDawari Bio Refinery Limited, which manufactures ethanol-based chemicals and operates an integrated bio-refinery.
2. When will the IPO open and close?
The IPO will open on October 23 and close on October 25.
3. What is the price range for the IPO?
The face value of the shares is ₹10, and the expected price range is between ₹334 to ₹352.
4. How much money is the company looking to raise?
The company aims to raise approximately ₹555 crores, of which ₹325 crores will be from fresh issuance.
5. What are the use of proceeds from the IPO?
The funds raised will primarily be used for debt repayment, working capital requirements, and general corporate purposes.
6. What is the expected listing date?
The shares are expected to be listed on the stock exchange around October 30.
7. Who are the major clients of GoDawari Bio Refinery?
Key clients include Hindustan Coca-Cola, HERSHEY, and other notable companies in the B2B sector.
8. Is there any lock-in period for existing shareholders?
No, there is no lock-in period for existing shareholders; they can sell their shares post-IPO.
9. What are the risks associated with investing in this IPO?
Investors should consider the company’s financial health, declining assets, and the competitive landscape before investing.
10. Should I invest in the GoDawari Bio Refinery IPO?
Investment decisions should be based on thorough analysis. It’s recommended to assess the company’s financials, market conditions, and your risk tolerance.
Thank you!