Bumper debut | Gandhar Oil Refinery lists at 75% premium to IPO price

The IPO was subscribed 64.07 times on November 24, the final day of bidding, with bids coming in for 136.1 crore shares against 2.12 crore shares on the block

White oil manufacturer Gandhar Oil Refinery (India) surpassed analysts' expectations and listed at a premium of 75 percent on exchanges on November 30. The stock started trading at Rs 295.40 on the BSE and Rs 298 on the NSE, against issue price of Rs 169 per share. Analysts had expected the stock to list at Rs 245.

The IPO was subscribed 64.07 times on November 24, the final day of bidding, with bids coming in for 136.1 crore shares against 2.12 crore shares on the block. Qualified institutional buyers booked 129 times their quota of shares, retail investors booked 28.95 times, and high net-worth individuals 62.2. times.

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The IPO comprised a fresh issue of Rs 302 crore shares by the company, and an offer-for-sale of Rs 198.69 crore by promoter and investors. The price band for the offer was set at Rs 160-169.

Gandhar Oil makes several products primarily across the personal care, healthcare and performance oils (PHPO), lubricants and process and insulating oils (PIO) divisions under the Divyol brand.

The company enjoys long-term relationships with several domestic and global customers including Procter & Gamble, Unilever, Marico, Dabur, Encube, Patanjali Ayurved, Bajaj Consumer Care, Emami and Amrutanjan Healthcare.

The company’s revenue from operations grew 15.13 percent to Rs 4,079.4 crore in FY23 from Rs 3,543.3 crore in FY22. Profit after tax rose 30.3 percent to Rs 213.17 crore from Rs 163.58 crore in the same period.

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