MUMBAI - Gandhar Oil Refinery India Limited's initial public offering (IPO) has captured the attention of investors, with the subscription rate reaching an impressive 5.52 times across all categories by the end of its launch day. The company, known for producing specialized white oils used in various industries, including personal care and insulating oils, set the IPO share price between ₹160 to ₹169.
The robust demand was evident as high net worth individuals (HNIs) led the charge with a subscription rate of 7.70 times, followed closely by retail investors at 6.89 times. Qualified Institutional Buyers (QIBs) also showed interest, subscribing 1.35 times the shares allocated to them.
This enthusiasm among investors was mirrored in the grey market, where Gandhar Oil's shares saw a grey market premium (GMP) jump to ₹73, suggesting a potential listing price of ₹242 per share. This would represent a gain of over 40% from the upper end of the IPO price range.
The capital raised through this public offer is earmarked for several strategic initiatives. Among these are repaying Texol's loan facility with Bank of Baroda and expanding automotive oil production capacity at the Silvassa Plant. Additionally, funds will go towards satisfying working capital requirements and pursuing general corporate objectives.
The company's IPO continued to draw bids, more than doubling the shares on offer with a subscription rate of 2.4 times. Retail bids were particularly strong at 3.02 times, with Non-Institutional Investors (NIIs) also showing robust interest at 2.87 times subscription. QIBs fulfilled their allocation on the first day itself.
Investors' minimum investment is set at ₹14,872 for retail investors, corresponding to an obligatory lot size of 88 shares. The forecasted optimistic listing price near ₹224 per share reflects Gandhar Oil's standing in its sector and aligns with investor expectations for the company's growth trajectory.
In advance of the IPO, Gandhar Oil secured ₹150.20 crore from cornerstone investors by offering equity at ₹169 per share to entities like SBI General Insurance Company and WhiteOak MF. The capital influx from this public offering is directed towards debt repayment and operational expansion at their Silvassa and Taloja plants to increase production capabilities.
Nuvama Wealth Management and ICICI Securities are leading the IPO as book-running lead managers, overseeing what is shaping up to be a highly successful market debut for Gandhar Oil Refinery on BSE and NSE with the post-offer period ending on November 24th.
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