Using an anchor book, investors scooped up Rs 150 crore in the Gandhar Oil IPO.
Under the Divyol brand, Gandhar Oil Refinery sells over 440 products, mostly in the personal care, healthcare, and performance oils (PHPO), lubricants, and process and insulating oils (PIO) divisions. On November 21, just before its public offering, the white oil manufacturer raised Rs. 150.2 crore through its anchor book.
November 22–24 is when the first public offering will open for subscriptions, with a price range of Rs 160–169 per share.
The Mumbai-based business announced that it has finalized the distribution of 88,88,018 equity shares to anchor investors at a price of Rs 169 per equity share, following discussions with merchant bankers.
A total of sixteen anchor investors, including Morgan Stanley, Societe Generale, Copthall Mauritius Investment, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Whiteoak Capital, Ashoka India Equity Investment Trust, Turnaround Opportunities Fund, Aditya Birla Sun Life Insurance Company, and SBI General Insurance Company, have received shares from Gandhar Oil Refinery, according to a filing made to exchanges.
Out of the total allocation of 88,88,018 equity shares to anchor investors, 42,28,576 equity shares were allocated to three domestic mutual funds, who have applied through a total of seven schemes,” the business stated.
The price range for Gandhar Oil Refinery (India) Ltd’s initial public offering (IPO) is ₹160–169 today. The issue is closed to the public on Friday, November 24.
The offering consists of an offer for sale (OFS) of 1.17 crore shares valued at ₹198.69 crore by the promoters and existing investors, in addition to a new issue of shares valued at ₹302 crore.
Gandhar Oil IPO: Today marked the official launch of Gandhar Oil Refinery Ltd.’s initial public offering (IPO), which will be open for bids until November 24, 2023. The IPO price of Gandhar Oil has been set by the white oil manufacturer at ₹160 to ₹169 for each equity share. The oil manufacturer wants to list on the BSE and NSE and hopes to raise 500.69 crore through its IPO.
The grey market, meanwhile, is indicating a positive trend for the Gandhar Oil IPO. Shares of Gandhar Oil Refinery Ltd. are currently trading on the grey market for a premium of ₹76, according to investorgain.com.
Key information about the Gandhar Oil IPO
1] GMP: The oil maker’s shares are currently offered on the grey market at a premium of ₹76.
2] IPO date: Bidding on the public issue began today and will continue until this Friday.
3] IPO price: The white oil manufacturer has set the public offering price range at ₹160 to ₹169 for each equity share.
4] Size: From its initial offer, the company hopes to raise 500.69 crore, of which 300 crore will come from the issuance of new shares.
5] Lot size: Bidders may submit their applications in lots, with each lot containing 88 shares of the company.
6] Investment cap: To apply for this public issue, a retail investor must have at least ₹14,872 (₹169 x 88).
7] Allotment date: The T+3 schedule indicates that November 27, 2023, is most likely the date of the Gandhar Oil IPO allotment.
8] Registrar: Link Intime India Private Ltd has been designated as the public issue’s official registrar.
9] Date of listing: The public issue is scheduled to go public on the BSE and NSE, with a share listing date of November 29, 2023, most likely.
The company is the largest producer of white oils in the country and reported revenues of over ₹4,000 cr for the year ended March 23,” stated Arun Kejriwal, the founder of Kejriwal Research and Investment Services. The business provides its goods to businesses in the performance oils, personal care, and healthcare sectors. It has plants in Sharjah, United Arab Emirates, and Maharashtra. For the year that ended on March 23, the company reported an EPS of ₹23.77. This EPS indicates that the issue’s PE is 6.73–7.11.
In fact, the PE is appealing and has room to grow in the near to medium run. The business would expand in the markets in which it is a major player and make better use of its capacity in Sharjah, a new plant that is not yet at full utilization. The Maharashtra plant’s capacity, which is almost at full utilization at 95%, is another goal of the issue, and capacity expansion would set the stage for future growth.
