Gandhar Oil Refinery IPO Overwhelmed with 11.46x Oversubscription

23 Nov 2023 , 02:18 PM

On November 23, the second day of bidding, the Gandhar Oil Refinery IPO recorded a substantial oversubscription of 11.46 times, with bids pouring in for 24.34 crore shares against the offered 2.12 crore shares. Click here to subscribe the IPO.

Leading the subscription, non-institutional investors (NIIs) exhibited significant demand, securing 19.08 times their allotted share quota. Retail investors also showed strong interest, subscribing at a rate of 13.69 times, while qualified institutional buyers subscribed 1.52 times.

The IPO allocation strategy designates 50% of the net issue for qualified institutional buyers (QIBs), allocates 15% to non-institutional investors (NIIs), and reserves the remaining 35% for retail investors.

Gandhar Oil’s IPO is priced in the range of Rs 160-169 per share, with a lot size of 88 shares. This implies that retail investors need a minimum investment of Rs 14,872.

The IPO aims to raise Rs 500.69 crore through a combination 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.

Gandhar Oil Refinery plans to utilize the raised capital to meet capital working requirements, reduce debt availed by Texol, and expand automotive oil capacities at the Silvassa plant. The strong investor response reflects confidence in the company’s prospects and the attractiveness of its IPO.