The state-run Gandhar Oil Refinery India opened its IPO for subscription on November 22, 2023, with a book-built issue of Rs 500.69 crores and will close on Friday, November 24. The IPO has a price band of Rs 160-169 per share.
Gandhar Oil is a prominent manufacturer of white oils, catering primarily to personal care, healthcare, and performance oils (PHPO), lubricants, and process and insulating oils (PIO) divisions under its Divyol brand.
This white oil manufacturer plans to raise Rs 500.69 crore via the public offer. The offer consists of a fresh issue of 1.78 crore shares worth Rs 302 crore and an offer-for-sale of 1.17 crore shares worth Rs 198.69 crore.
The company plans to utilize IPO proceeds to meet capital working requirements of the company, reduce debt availed by Texol, and use them towards the expansion of automotive oil capacities at the Silvassa plant.
The lot size was 88 shares and the minimum investment required by retail investors was Rs 14,872.
Gandhar Oil IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non-Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.
Gandhar Oil Refinery IPO GMP today or grey market premium is +70. This indicates the share price was trading at a premium of ₹70 in the grey market.
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Gandhar Oil Refinery's share price is ₹239 apiece, which is 41.42% higher than the IPO price of ₹169.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
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