Gandhar Oil Refinery India IPO opens: GMP, subscription status, issue details, 10 key things to know before subscribing

Gandhar Oil IPO: Gandhar Oil Refinery India IPO has opened for  subscription today (Wednesday, November 22). According to the CRISIL Report, Gandhar Oil Refinery India is one of the top producers of white oils in terms of revenue, with an increasing emphasis on the consumer and healthcare end markets. The product suite under the "Divyol" brand included over 440 items as of June 30, 2023, mostly from the lubricants, process and insulating oils (PIO), and personal care, healthcare, and performance oils (PHPO) divisions. Prominent Indian and international companies utilise our products as ingredients to make consumer, healthcare, automotive, industrial, power, tyre, and rubber end products.

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The products were sold in more than 100 countries worldwide as of June 30, 2023. With the support of our extensive global supplier base and manufacturing operations in India and the United Arab Emirates, Gandhar Oil Refinery India served over 3,500 customers in the Financial Year 2023, including well-known Indian and international businesses like Procter & Gamble (P&G), Unilever, Marico, Dabur, Encube, Patanjali Ayurved, Bajaj Consumer Care, Emami, and Amrutanjan Healthcare, as per Red-herring prospectus (RHP).

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The company's listed industry peers are Savita Oil Technologies Ltd (with P/E ratio of 10.84), Apar Industries Ltd (with P/E ratio of 29.96), Panama Petrochem Ltd (with P/E ratio of 7.96), Galaxy Surfactants Ltd (with P/E ratio of 24.16), Privi Speciality Chemicals Ltd (with P/E ratio of 222.13), Rossari Biotech Ltd (with P/E ratio of 40.73), and Fairchem Organics Ltd (with P/E ratio of 32.74). 

Also Read: Gandhar Oil IPO opens on November 22, price band set at ₹160-169 per share

The company's operating revenue rose from ₹3,543.3 crore in FY22 to ₹4,079.4 crore in FY23, a 15.13 percent rise. Over the same period, profit after tax increased by 30.3 percent to ₹213.17 crore from ₹163.58 crore, as per reports. 

Here are the 10 key things to know about Gandhar Oil Refinery India IPO:

Gandhar Oil IPO date: Gandhar Oil IPO date of subscription is scheduled for Wednesday, November 22, and will close on Friday, November 24.

Gandhar Oil IPO price:  Gandhar Oil IPO price band has been set in the range of ₹160 to ₹169 per equity share of face value of ₹2.

Gandhar Oil IPO lot size: Gandhar Oil IPO lot size is 88 equity shares and in multiples of 88 equity shares thereafter.

Also Read: Gandhar Oil Refinery (India) gets green signal from Sebi to launch its proposed IPO; key highlights here

Gandhar Oil Refinery India IPO anchor investor: The allocation to anchor investors for Gandhar Oil Refinery IPO is scheduled to take place on Tuesday, November 21.

Gandhar Oil IPO detail: Gandhar Oil Refinery India Ltd IPO comprises a fresh issue of shares of up to ₹302 crore and an offer for sale (OFS) of up 11,756,910 equity shares of face value of ₹2 each by a promoter and others.

According to the RHP, Promoter Ramesh Babulal Parekh, Kailash Parekh, and Gulab Parekh would each sell 2,250,000 equity shares. Other selling shareholders are Green Desert Real Estate Brokers, who will offload 3,000,000 equity shares, and Denver Bldg Mat & Décor TR LLC would offer 1,000,000 equity shares.

Gandhar Oil IPO objective: As per RHP, the company will be using the net proceeds from the new issue to finance the subsequent objectives: investing in Texol through a loan to finance the repayment or prepayment of a loan facility obtained by Texol from the Bank of Baroda; capital expenditure by buying equipment and doing civil work necessary for expanding the capacity of automotive oil at our Silvassa Plant; financing the company's working capital needs; and general corporate purposes.

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Gandhar Oil IPO allotment and Gandhar Oil IPO listing date: Tentatively, Gandhar Oil IPO basis of allotment of shares will be finalised on Thursday, November 30 and the company will initiate refunds on Friday, December 1, while the shares will be credited to the demat account of allottees on Monday, December 4. Gandhar Oil IPO shares are likely to be listed on BSE and NSE on Tuesday, December 5. If in case, the company decides to switch to T+3 norm, the dates will get preponed.

Lead Manager and Registrar of Gandhar Oil IPO: The registrar for the Gandhar Oil Refinery India IPO is Link Intime India Private Ltd, while the book running lead managers are Edelweiss Financial Services Ltd and ICICI Securities Limited.

Gandhar Oil IPO Reservation: Gandhar Oil IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.

Gandhar Oil IPO GMP today: Gandhar Oil Refinery IPO GMP today or grey market premium is +70. This indicates Gandhar Oil Refinery share price were trading at a premium of ₹70 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Gandhar Oil Refinery share price is ₹239 apiece, which is 41.42% higher than the IPO price of ₹169.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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