Gandhar Oil Refinery IPO: Rs 501 Crore Public Offer Oversubscribed By 5.52x, Latest GMP

Gandhar Oil Refinery India IPO: This Rs 501 crore worth public offer was fully subscribed by 5.52x on the first day of the launch. High net worth and retail investors were the biggest bidders of the IPO. The issue opened on November 22nd and will be available till November 24th. Post the offer, the company's proposed shares will be listed on BSE and NSE.

As per NSE's data, cumulatively, the IPO received bids of 11,72,85,168 equity shares, against the offered size of 2,12,43,940 equity shares, registering an oversubscription of 5.52x.

The portion reserved for Non-Institutional Investors (NII) aka high net worth investors oversubscribed by 7.70x, while the portion allotted to retail individual investors (RIIs) oversubscribed by 6.89x. Also, Qualified Institutional Buyers (QIBs) showed healthy demand for the IPO by subscribing 1.35 times the reserved portion for them.

On Wednesday, the IPO's grey market premium (GMP) also witnessed huge demand. As per the InvestorGrain website, Gandhar Oil Refinery IPO's last GMP is ₹73, last updated Nov 22nd 2023 07:01 PM. With a price band of 169.00, Gandhar Oil Refinery IPO's estimated listing price is ₹242 (cap price + today's GMP). The expected percentage gain/loss per share is 43.20%.

Gandhar Oil is planning to raise to Rs 500.69 crore from its initial public offer. The company fixed price bands in the range of Rs 160 to Rs 169 per share. The Floor Price is 80.00 times and the Cap Price is 84.50 times the face value of the equity shares. Bids can be made for a minimum of 14,872 Equity Shares and in multiples of 88 Equity Shares thereafter.

The IPO comprised of Rs 302 million fresh issue and an offer for sale of up to 11,756,910 equity shares amounting to Rs 198.69 crore.

The Company intends to use the proceeds of the Fresh Issue for (i) investment in Texol by way of a loan for financing the repayment/pre-payment of a loan facility availed by Texol from the Bank of Baroda; (ii) capital expenditure through purchase of equipment and civil work required for expansion in capacity of automotive oil at the Company's Silvassa Plant; (iii) funding the Company's working capital requirement; (iv) and general corporate purposes.

Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) and ICICI Securities Limited are the Book Running Lead Managers.