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Synopsis: Godavari Biorefineries stock experienced a 4.7% surge, crossing its IPO issue price after a significant block deal. Madhuri Madhusudan Kela, the wife of renowned investor Madhusudan Kela, acquired 5 lakh shares, leading to heightened interest in the stock, which rose to Rs359.05 in early trading. This surge occurred following a muted market debut where the stock initially listed below its IPO price.
On November 1, 2024, Godavari Biorefineries Limited (GBL) saw its stock price rally by 4.7%, reaching Rs359.05 on the BSE in early trading. This jump came after Madhuri Madhusudan Kela, spouse of renowned investor Madhusudan Kela, purchased 500,000 shares of the company in a significant block deal at Rs335.66 per share, amounting to approximately Rs17 crore. This acquisition drove the share price above its IPO issue price of Rs352 and marked a significant increase in trading interest.
The company, which went public just days prior, initially had a modest debut on October 30, 2024. Listed at Rs308 on the NSE, GBL’s IPO price band was set between Rs334 and Rs352 per share. The IPO, which closed on October 25, was oversubscribed 1.8 times, with qualified institutional buyers showing the highest interest, subscribing 2.76 times their allotted portion. Retail investors also contributed to the momentum with a 1.7 times subscription, while non-institutional investors showed relatively lower engagement.
Background on Godavari Biorefineries
Founded in 1956, Godavari Biorefineries is a key player in India’s bio-based chemical industry, producing a variety of ethanol-based chemicals. Its product portfolio serves diverse sectors, including pharmaceuticals, personal care, fuel, food, and cosmetics. Through the recent IPO, the company raised Rs554.75 crore, earmarking Rs325 crore for fresh share sales and Rs229.75 crore for an offer-for-sale component.
With its recent listing, Godavari Biorefineries has attained a market capitalization of approximately Rs1,788 crore on the BSE. The positive response from investors reflects confidence in the company’s future growth potential within the ethanol sector, a growing industry driven by demand for bio-based alternatives across multiple industries.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with a financial advisor before making any investment decisions.
