Gandhar Oil Refinery IPO: The preliminary public providing of Gandhar Oil Refinery (India) Ltd has acquired an awesome response from buyers. The Rs 500-crore IPO, which might be closed on Friday, has to this point acquired a whopping 17.96 occasions subscription. Till 10:40 am on the third day of bidding on Friday, the IPO acquired bids for 38,16,22,296 shares as towards 2,12,43,940 shares on provide.
The portion for non-institutional buyers received subscribed 32.56 occasions whereas the class for Retail Individual Investors (RIIs) attracted 19.78 occasions subscription. The quota for Qualified Institutional Buyers (QIBs) acquired 3.37 occasions subscription.
The IPO was oversubscribed inside hours of its opening on Wednesday, November 22. The provide will stay accessible until the tip of the market hours on Friday, November 24.
The IPO allotment is prone to happen on November 30, whereas its inventory market 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 76 greater within the gray market as in contrast with its concern worth. The Rs 76 gray market premium or GMP means the gray market is anticipating a 44.97 per cent itemizing achieve from the general public concern. The GMP is predicated on market sentiments and retains altering.
‘Grey market premium’ signifies buyers’ readiness to pay greater than the difficulty 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 high 5 gamers globally by way of market share in CY22.
Gandhar Oil Refinery IPO Details: Price, Lot Size
The IPO includes a recent concern 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 embody 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 concern, 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 dimension for an software is 88 shares. The minimal quantity of funding required by retail buyers is Rs 14,872. The minimal lot dimension funding for NII is 14 heaps (1,232 shares), amounting to Rs 2,08,208, and for NII, it’s 68 heaps (5,984 shares), amounting to Rs 1,011,296.
The proceeds from the recent concern element might 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 might 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 give attention to the patron and healthcare finish industries. Nuvama Wealth Management (previously generally known as Edelweiss Securities) and ICICI Securities are the book-running lead managers to the IPO.
