Monitoring Agency Report issued by the CARE Rating Limited for the quarter ended 30th June, 2025
GODAVARIB · price
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Godavari Biorefineries filed the Monitoring Agency (MA) report from CARE Ratings for the quarter ended June 30, 2025, tracking use of its Rs. 325 crore IPO proceeds raised in October 2024. As of June 30, 2025, Rs. 322.80 crore has been utilized — including the full Rs. 240 crore earmarked for loan repayment (completed by November 2024) and Rs. 65.01 crore for general corporate purposes. The board, via a May 24, 2025 resolution, reclassified Rs. 1.46 crore of savings from issue expenses into general corporate purposes and approved transferring up to an additional Rs. 2.25 crore similarly. The MA flagged that shareholder approval (rather than just board approval) may be required for changes to issue objects, though the company relied on a legal opinion from Khaitan & Co. The report also disclosed that the company posted a net loss of Rs. 23 crore in FY25 versus a Rs. 12 crore profit in FY24, largely due to a Rs. 24 crore one-time notional deferred tax liability from changes in tax law.
Most IPO funds are now deployed and loan repayment is done, reducing the headline risk on the issue. However, investors may note governance concerns — funds being reclassified via board resolution instead of shareholder approval — and the swing to a FY25 net loss, which could weigh on short-term sentiment despite the loss being largely accounting/tax-driven.