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Gandhar Oil Refinery IPO subscribed 64x as QIBs rush in

Gandhar Oil Refinery IPO subscribed 64x as QIBs rush in
Stock Market2 min read
  • The QIB portion of the IPO was subscribed 200 times over on the last day.
  • The grey market expects 41% listing gains from the stock.
The ₹500.69 crore initial public offer (IPO) of Gandhar Oil Refinery was subscribed 64 times on the second day of the issue. Its book is as busy as the highly publicized Tata Tech IPO, as qualified institutional buyers (QIBs) bid aggressively for its issue too, and the portion is subscribed 129 times.

The non-institutional and retail investor quota was subscribed 62x and 28x, respectively. The white oil manufacturer raised ₹150 crore from 16 anchor investors to domestic mutual funds and others.

The grey market expects 41% listing gains from the stock and is expected to list on the bourses next week.

Type of investor

No of times subscribed

Qualified Institutional Buyers

129

Non-institutional Investors

62.23

Retail

28.95

Total

64.07

Source: BSE

The issue closes on November 24, and has fixed a price band of ₹160-169 per share. The minimum lot size for an application is 88 shares.

The IPO comprises a fresh issue of equity shares worth ₹302 crore and an Offer for Sale (OFS) of 1.17 crore by promoters and existing shareholders.

Those offering shares in the OFS include promoters -- Ramesh Babulal Parekh, Kailash Parekh and Gulab Parekh -- and other shareholders -- Fleet Line Shipping Services LLC, Denver Bldg Mat & Decor TR LLC and Green Desert Real Estate Brokers.

Proceeds from the fresh issue component will be used for payment of debt and for the purchase of equipment and civil work required for expansion in the capacity of automotive oil at the Silvassa plant.

In addition, funds will be utilised for expansion in capacity of petroleum jelly and accompanying cosmetic product division at the company's Taloja plant as well as expansion in capacity of white oils by installing blending tanks at the plant and funding working capital requirements.

It’s a leading manufacturer of white oils with a growing focus on the consumer and healthcare end industries.

As of June 30, 2022, the company's product suite comprised over 350 products primarily across the personal care, healthcare and performance oils, lubricants and process and insulating oils divisions under the Divyol brand.

(With PTI inputs)

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