Shares of Gandhar Oil Refinery (India) Ltd, heartthrobs of IPO investors, listed on strong note at the bourses. Against the issue price of ₹169, the stock listed at ₹295.40 and surged further to hit a high of ₹344 on the BSE. However, the stock closed at ₹301.50, a whopping gain of 78.40 per cent over the IPO price.
Similarly, on the NSE, the stock closed at ₹301.55 after opening at ₹298. Over 3.80 crore shares changed hands on the NSE and 29.06 lakh shares on the BSE.
The issue was subscribed over 64 times as all category of investors poured in money. The ₹501-crore issue comprised a fresh issue of shares worth ₹302 crore and an Offer for Sale (OFS) of 1.17 crore shares worth ₹198.69 crore by promoters and existing shareholders.
The portion for non-institutional investors got subscribed 62.2 times, while the category for retail investors attracted bids for 29 times. The quota for Qualified Institutional Buyers (QIBs) received 129 times subscription.
“Considering the growth outlook and profitability margins, currently the stock is fairly valued, thus investors are advised to book profit. Fresh buying is not recommended at this levels,” said Rajnath Yadav, Research Analyst, Choice Broking.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, said: The company’s strong fundamentals, robust demand for the IPO and strong listing price suggest that the company is well-positioned for growth in the future. However, investors may consider to book profit in it once.
Gandhar Oil had raised a ₹150.20 crore from anchor investors ahead of the issue.
The company said that proceeds from the fresh issue 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, the 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.