The IPO of Gandhar Oil Refinery (India) Ltd was grabbed by investors immediately, as the issue was subscribed over 5.5 times at the end of Day 1. The initial public offering of the company, which comes at a price band of ₹160-169., receiving bids for 11.73 crore shares as against 2.12 crore shares on offer.
The issue comprises 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 IPO closes for public subscription on Friday.
The portion for non-institutional investors got subscribed 7.70 times while the category for Retail Individual Investors (RIIs) attracted 6.89 times subscription. The quota for Qualified Institutional Buyers (QIBs) received 1.35 times subscription.
The company has reserved 50 per cent of the net issue portion for qualified institutional buyers, and 15 percent for high networth individuals (non-institutional investors) and the remaining 35 per cent to retail investors.
Gandhar Oil Refinery (India) Ltd on Tuesday raised a ₹150.20 crore from anchor investors. The company has allotted 88.88 lakh equity shares to 16 funds at ₹169 apiece, according to a circular uploaded on the BSE’s website. Among the anchor investors include Morgan Stanley Asia (Singapore) Pte, Copthall Mauritius Investment Ltd, Societe Generale, SBI General Insurance Company, Aditya Birla Sun Life Insurance Company, ICICI Prudential Mutual Fund (MF), HDFC MF, and WhiteOak MF.
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 & Décor 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, 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.
Gandhar Oil Refinery is a leading manufacturer of white oils with a growing focus on the consumer and healthcare end industries. It offers over 440 products primarily across the personal care, healthcare and performance oils (PHPO), lubricants and process and insulating oils (PIO) divisions under its Divyol brand
Nuvama Wealth Management and ICICI Securities are the book-running lead managers to the IPO.