Gandhar Oil witnessed a remarkable debut on the National Stock Exchange (NSE) on Thursday, showcasing a significant premium of 76 per cent.
The stock made its entry at Rs 298 on the NSE, marking a considerable increase from the issue price of Rs 169. While, its debut on the Bombay Stock Exchange (BSE) was at Rs 295.4, reflecting a substantial 75 per cent surge compared to the initial offer price.
The initial public offering (IPO) included a new issuance of company shares amounting to Rs 302 crore, along with an offer-for-sale totaling Rs 198.69 crore. The pricing band for the offering was established between Rs 160 and Rs 169.
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Gandhar Oil Refinery (India) Limited is a prominent player in the specialty oils sector, renowned for its leadership in white oil manufacturing. The company, with a diverse product portfolio including white oils, waxes, automotive oils, and more, caters to consumer and healthcare industries.
Shivani Nyati, Head of Wealth at Swastika Investmart Ltd. said that the strong response from investors could be due to a number of factors, including the company's strong track record of growth and profitability, its diversified customer portfolio, and its strong distribution network.
The initial public offering (IPO) of Gandhar Oil Refinery (India) Limited witnessed robust investor demand, with bids submitted for 136.1 crore shares against the available 2.12 crore shares. Qualified institutional buyers demonstrated significant interest, oversubscribing their allocated quota by 129 times. Retail investors also displayed strong participation, subscribing 28.95 times the portion designated for them, while high net-worth individuals also exhibited strong demand, oversubscribing 62.2 times.
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"The company's strong fundamentals, robust demand for the IPO, and strong listing price suggest that the company is well-positioned for growth in the future. However investors may consider to book profit in it once," Nyati added.
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