Blockbuster Listing: Gandhar Oil Debuts At 75% Premium; Stock Rallies By 104% From IPO Price In Single-Day

Gandhar Oil Refinery witnessed a strong debut in the stock market, with its shares opening at a whopping 75% premium to its initial public offering (IPO) price. The stock is listed at Rs 295.4 per share marking a significant leap from its issue price of Rs 169 per share.

Within moments of hitting the stock exchange, Gandhar Oil's shares soared to as high as Rs 344 per share, effectively doubling from its IPO price on the listing day. This bullish performance reflects the market's enthusiasm for the company's growth potential and strategic initiatives.

Gandhar Oil Refinery's three-day IPO, aimed at raising Rs 500 crore, witnessed an overwhelming response from investors. The issue garnered bids totalling Rs 23,000 crore over the three-day subscription period, demonstrating a subscription rate of 65 times.

The institutional investor segment (QIB) exhibited exceptional interest, subscribing 129 times, highlighting institutional faith in Gandhar Oil's future endeavours. Whereas, non-Institutional Investors also showed substantial interest, with a subscription rate of 64.34 times. Even the retail investor segment witnessed a healthy subscription, totalling 30 times.

Post-IPO, Gandhar Oil Refinery's promoter shareholding is set to decrease from 87.5% to 59.51%, indicating a broader distribution of ownership and potential opportunities for new investors.

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, stated "As expected, a solid listing gains above our expectation for a leading manufacturer of white oils, Gandhar Oil mainly on the back of reasonable IPO valuation when compared to its peers which were trading high." He further added, "Post listing, we believe the valuation gap has narrowed to Gandhar peers and hence expecting limited upside from the current levels, hence we had recommended allotted investors to book listing day profits which is over and above our expectations."

Gandhar Oil Refinery's IPO success has positioned the company to raise funds for strategic ventures. The fresh capital is earmarked for investment in its overseas joint venture, Texol, through a loan. This move aims to facilitate the repayment of existing loans availed by the joint venture. Additionally, the proceeds will be allocated to fund expansion initiatives and capital expenditures at the company's plants in Taloja and Silvassa, addressing crucial working capital requirements.

Gandhar Oil Refinery, a player in the production of specialty oils, boasts an extensive portfolio of 440 products spanning personal care, healthcare, performance oils, lubricants, and process and insulating oils. As the largest manufacturer of white oils and one of the top five global players in terms of market share in 2022, the company has solidified its position in the industry.

Investors and industry experts alike are optimistic about Gandhar Oil's future trajectory, as the successful IPO and stellar market debut underscore the company's robust fundamentals and growth prospects.