Gandhar Oil Refinery IPO: The preliminary public providing of Gandhar Oil Refinery (India) Ltd, which opened for public subscription on Wednesday, acquired an amazing response on the primary day of bidding. Till the top of bidding on Wednesday, the Rs 500-crore IPO received 5.52 occasions subscription, receiving bids for 11,72,85,168 shares as towards 2,12,43,940 shares on provide.
The portion for non-institutional traders received subscribed 7.70 occasions whereas the class for Retail Individual Investors (RIIs) attracted 6.89 occasions subscription. The quota for Qualified Institutional Buyers (QIBs) acquired 1.35 occasions subscription.
The IPO was oversubscribed inside hours of IPO opening on Wednesday, November 22. The provide will stay obtainable until November 24.
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The class for non-institutional traders was subscribed 1.53 occasions, whereas the portion for retail particular person traders (RIIs) acquired 1.77 occasions subscription. The quota for certified institutional consumers (QIBs) acquired bids for simply 5,016 shares.
The firm has raised a bit of over Rs 150 crore from anchor traders a day earlier than its preliminary share-sale providing.
The IPO allotment will happen on November 30, whereas the share itemizing may happen on December 5.
Gandhar Oil Refinery IPO GMP
According to market observers, unlisted shares of Gandhar Oil Refinery (India) Ltd have been buying and selling Rs 70 increased within the gray market as in contrast with its subject worth. The Rs 70 gray market premium or GMP means the gray market is anticipating a 41.42 per cent itemizing acquire from the general public subject. The GMP relies on market sentiments and retains altering.
‘Grey market premium’ signifies traders’ readiness to pay greater than the problem worth.
The worth band of the IPO has been fastened at Rs 160-169 per share.
Gandhar Oil Refinery IPO: Should You Subscribe?
Giving the ‘Subscribe’ suggestion, brokerage Swastika Investmart stated, “The issue appears to be fairly priced, with a P/E ratio of 7.10x. So considering all these factors, we assign a subscribe rating to this IPO.”
Gandhar Oil Refinery is launching its IPO after abandoning plans to take action in 2017.
Similarly, analysts at BP Wealth stated, “The issue is fairly valued. We recommend a ‘SUBSCRIBE’ rating for the issue.”
It stated Gandhar Oil Refinery was India’s largest producer of white oils by income in FY23, together with home and abroad gross sales, and was one of many prime 5 gamers globally when it comes to market share in CY22.
Gandhar Oil Refinery IPO Details: Price, Lot Size
The IPO includes a contemporary subject of fairness shares price Rs 302 crore and an Offer for Sale (OFS) of 1.17 crore shares by promoters and present shareholders.
Those providing shares within the OFS embrace promoters — Ramesh Babulal Parekh, Kailash Parekh, and Gulab Parekh — and different shareholders, Fleet Line Shipping Services LLC, Denver Bldg Mat & Dcor TR LLC, and Green Desert Real Estate Brokers.
The maiden public subject, with a worth band of Rs 160-169 per share, will open for subscription on November 22 and finish on November 24. The firm will fetch as much as Rs 500.69 crore on the higher finish of the worth band.
The minimal lot measurement for an software is 88 shares. The minimal quantity of funding required by retail traders is Rs 14,872. The minimal lot measurement funding for NII is 14 tons (1,232 shares), amounting to Rs 2,08,208, and for NII, it’s 68 tons (5,984 shares), amounting to Rs 1,011,296.
The proceeds from the contemporary subject element will probably be used for fee of debt and for the acquisition of kit and civil work required for growth within the capability of automotive oil on the Silvassa plant.
In addition, the funds will probably be utilised for growth in capability of petroleum jelly and accompanying beauty product division on the firm’s Taloja plant in addition to growth in capability of white oils by putting in mixing tanks on the plant and funding working capital necessities.
Gandhar Oil Refinery is a number one producer of white oils with a rising deal with the buyer and healthcare finish industries. Nuvama Wealth Management (previously referred to as Edelweiss Securities) and ICICI Securities are the e-book-operating lead managers to the IPO.
(The story and the headline has been up to date with the newest subscription and GMP knowledge)
