In the dynamic landscape of the stock market, IPOs often capture the attention of investors, offering a glimpse into the future potential of a company. The recent buzz surrounds Gandhar Oil Refinery India Ltd, as it gears up to go public. This article aims to provide a comprehensive overview of the Gandhar Oil IPO, exploring crucial details, market sentiments, and projections.

Certainly! Here’s the table for Gandhar Oil Refinery India IPO Details :

Overview of Gandhar Oil Refinery India IPO

The Gandhar Oil Refinery India IPO, which opened for subscription on November 22, 2023, and closes on November 24, has already sparked interest among investors. The company’s stock, with a face value of ₹2 per share, is offered in a price band ranging from ₹160 to ₹169 per share. This book-building IPO combines a fresh issue of 1,78,69,822 shares and an offer for sale (OFS) of 1,17,56,910 shares.

The IPO is set to raise substantial capital, with the fresh issue portion targeting ₹302 crore, and the OFS portion aiming for ₹198.69 crore. The funds raised will be allocated for various purposes, including investing in Texol, refinancing loans, capex for equipment purchase, automotive oil capacity expansion, and the expansion of the oil and jelly facility at Taloja.

Gandhar Oil Grey Market Premium (GMP) Analysis

One of the intriguing aspects of any IPO is the Grey Market Premium (GMP), an informal gauge of demand and supply. The GMP for Gandhar Oil Refinery India Ltd has been dynamic, reflecting market sentiments in the days leading up to the IPO opening:

The GMP, which started at ₹42, witnessed fluctuations but settled at ₹68 on the upper end of the price band. This suggests a listing premium of approximately 27.22%, indicating a potential listing price of around ₹215 per share on December 5, 2023.

Subscription and Lot Sizes of Gandhar Oil

Investors keen on participating in the Gandhar Oil IPO need to understand the lot sizes and subscription details. The table below outlines the lot sizes for different investor categories:

For the Business High Net Worth (B-HNI) and Qualified Institutional Buyer (QIB) categories, there are no upper limits.

Gandhar Oil Quota Allocation Across IPO Investor Categories

Understanding the allocation of shares across investor categories provides insights into the distribution strategy. For the Gandhar Oil IPO, the allocation is as follows:

The total IPO issue size is 2,96,26,732 shares, with the QIBs getting 50%, retail investors 35%, and HNI/NII investors receiving 15%.

Company Profile and Offer Details of Gandhar Oil

Gandhar Oil Refinery India is a leading producer of white oils, catering to diverse markets, including consumer and healthcare. As of June 30, 2023, the company’s product suite under the “Divyol” brand comprised over 440 items. With a global presence in more than 100 countries, Gandhar Oil serves over 3,500 customers, including prominent names like Procter & Gamble, Unilever, and Marico.

The IPO, managed by Nuvama Wealth Management and ICICI Securities Ltd, comprises a fresh issue of ₹302 crore and an OFS of ₹198.69 crore. The promoters, along with early investor shareholders, will divest their shares through the OFS.

Gandhar Oil Financial Performance and Industry Peers

Gandhar Oil Refinery India has showcased robust financial performance, with operating revenue increasing from ₹3,543.3 crore in FY22 to ₹4,079.4 crore in FY23, a 15.13% rise. The profit after tax also saw a significant uptick, rising by 30.3% to ₹213.17 crore.

Comparing the company’s performance with industry peers provides a broader perspective:

• Savita Oil Technologies Ltd (P/E ratio of 10.84)
• Apar Industries Ltd (P/E ratio of 29.96)
• Panama Petrochem Ltd (P/E ratio of 7.96)
• Galaxy Surfactants Ltd (P/E ratio of 24.16)
• Privi Speciality Chemicals Ltd (P/E ratio of 222.13)
• Rossari Biotech Ltd (P/E ratio of 40.73)
• Fairchem Organics Ltd (P/E ratio of 32.74)

Key Takeaways and Future Prospects of Gandhar Oil

As investors eagerly await the subscription numbers post-IPO opening on November 22, the GMP provides a preliminary indication of market sentiments. The estimated listing premium of 27.22% signals optimism, but the dynamic nature of the stock market emphasizes the need for vigilance.

The IPO allotment basis is expected to be finalized on November 30, with refunds initiated on December 1. Demat credits are projected for December 4, and the stock is set to list on December 5, 2023, on both the NSE and BSE.

In conclusion, the Gandhar Oil Refinery India IPO presents an exciting opportunity for investors, backed by the company’s global presence, robust financials, and the potential for future growth. However, investors should conduct thorough due diligence, closely monitor subscription trends, and stay informed about market dynamics.

Gandhar Oil Frequently asked questions: