Gandhar Oil IPO sails through on Day 1; oversubscribed at 4.2x led by retail investors, NIIs

The company reserved 50 percent of the net issue portion for QIBs, 15 percent for NIIs and the remaining 35 percent portion for retail investors

State-run Gandhar Oil Refinery's 198-crore initial public offering (IPO) was fully subscribed on day 1, with bids coming in for 89 million shares as against a total of 21 million offered shares.

The public issue was subscribed by a total of 4.2 times (x) led by retail and non-institutional investors (NIIs), as of 3:15 pm. While NIIs booked 5.56x of the public issue, retail investors booked 5.23x, data suggested.

A minimal spark was seen among qualified institutional buyers (QIBs) as they subscribed 1.3x of issue portion on day 1 of the IPO subscription, showed data.

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The company reserved 50 percent of the net issue portion for QIBs, 15 percent for NIIs and the remaining 35 percent portion for retail investors.

Gandhar Oil IPO price band has been set at Rs 160-Rs 169 per share. The lot size was 88 shares and minimum investment required by retail investors was Rs 14,872.

According to unlisted markets, shares of Gandhar Oil enjoyed a premium of 33 percent in grey markets, implying listing price of Rs 224 apiece on the upper price band (Rs 169 per share).

Gandhar Oil is a prominet manufacturer of white oils, catering primarly across personal care, healthcare and performance oils (PHPO), lubricants and process and insulating oils (PIO) divisions under its Divyol brand.

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The white oil manufacturer plans to raise Rs 500.69 crore via the public offer. The offer consists of a fresh issue of 1.78 crore shares worth Rs 302 crore and an offer-for-sale of 1.17 crore shares worth Rs 198.69 crore.

The company plans to utilise IPO proceeds to meet capital working requirements of the company, reduce debt availed by Texol, and use towards expansion of automotive oil capacities at Silvassa plant.

That apart, the Mumbai-based company allocated 8.8 million equity shares to anchor investors at Rs 169 per equity share. Shares were allocated to 16 anchor investors, including Morgan Stanley, Societe Generale, Copthall Mauritius Investment, ICICI Prudential Mutual Fund, HDFC Mutual Fund, Whiteoak Capital, Ashoka India Equity Investment Trust, Turnaround Opportunities Fund, Aditya Birla Sun Life Insurance Company, and SBI General Insurance Company.

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Meanwhile, Tata Tech IPO that also opened on November 22 for subscription was oversubscribed at 2.9x, as of 12:55 pm, led by NIIs and retail investors.

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