MUMBAI – Gandhar Oil Refinery India Ltd., well-known for its popular “Divyol” brand products, is all set to make its mark on the financial market with its highly-anticipated Initial Public Offering (IPO). The company aims to raise an impressive ₹500.69 crore through this offering, which is scheduled to take place on Wednesday, November 22.
During the IPO, ₹302 crore worth of shares will be offered as a fresh issue, while existing promoters will also be offering shares worth ₹198.69 crore. The price band for the IPO has been set at ₹160 to ₹169 per share. The offer is expected to conclude on Friday, November 24.
Gandhar Oil Refinery has gained significant market presence and currently ranks among the top five globally in terms of its share in the white oil market for Calendar Year 2022. Its extensive customer base includes major clients such as Procter & Gamble.
The funds raised from the IPO will be allocated for various initiatives, including repayment of Texol’s loan from the Bank of Baroda, fulfilling working capital requirements, general corporate purposes, and expanding capacity at the company’s Silvassa and Taloja plants.
Investor interest in the IPO can be seen in the Grey Market Premium (GMP). Initially priced at ₹42, the GMP reached its peak at ₹56 before stabilizing at ₹46. This indicates a potential listing price of around ₹215 per share, showcasing a healthy premium over the IPO price band.
Retail investors have the opportunity to apply for minimum lots worth ₹14,872, with a maximum limit of ₹1,93,336. However, there are no upper limit caps for B-HNI and QIB categories.
Once the IPO closes on November 24, finalization of allotments will take place on Thursday, November 30. Refunds will be initiated by Friday, December 1st, and investors can expect demat credits by Monday, December 4th. The company will be officially listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on December 5th.
Gandhar Oil Refinery plans to use the investments from the IPO to support its strategic initiatives, including expanding its automotive oil capacity and enhancing its Taloja facility. The company’s post-listing trading dynamics will comply with mainboard issue norms, allowing single share trades after the IPO period concludes.
1. When is Gandhar Oil Refinery’s IPO scheduled to take place?
The IPO is set to launch on Wednesday, November 22.
2. What is the price band for Gandhar Oil Refinery’s IPO?
The price band for the IPO is set between ₹160 and ₹169 per share.
3. What will the funds from the IPO be used for?
The funds will be allocated for repaying Texol’s loan, fulfilling working capital requirements, supporting general corporate purposes, and expanding capacities at the company’s Silvassa and Taloja plants.