The shares of Gandhar Oil had debuted on the exchanges at a solid 75% premium over the issue price of Rs 160-169. The stock ended at Rs 301 after getting listed at Rs 298. Around 10:15 am, nearly 48 lakh shares of Gandhar Oil were trading on the NSE.
Gandhar Oil received a better-than-expected subscription demand at 64x for its IPO, mainly on the back of reasonable valuations. The net proceeds from fresh issuance worth Rs 357 crore will be used towards financing the repayment/pre-payment of a loan facility, purchase of equipment and civil work, expansion in capacity of automotive oil, petroleum jelly, white oils by installing blending tanks, funding working capital requirements and general corporate purposes.
The strong debut was attributed to the company s strong positioning in the industry, where it is among the top two white oil players and the only Indian player to rank among the top five players globally by revenue.
Gandhar Oil Refinery IPO comprises the issuance of fresh equity shares worth Rs 302 crore and an offer for sale (OFS) of 11,756,910 equity shares by existing shareholders. Under the OFS, promoter-selling shareholders Kailash Parekh, Gulab Parekh, and other selling shareholders Green Desert Real Estate and Fleet Line Shipping among others will offload stakes.
Gandhar Oil Refinery IPO comprises a fresh equity issue of Rs 357 crore and an offer for sale (OFS) of Rs 143 crore. The price band for the issue will be announced soon for the Rs Rs 500-crore IPO.