Gandhar Oil Refinery IPO Fully Subscribed Within Hours Of Opening For Subscription

The initial public offer of Gandhar Oil Refinery (India) got fully subscribed within hours of opening for bidding on Wednesday.

The Rs 500.69 crore IPO received bids for 2,96,40,864 shares against 2,12,43,940 shares on offer, translating into 1.40 times subscription, as per data available with the NSE till 1145 hrs.

The portion for Retail Individual Investors (RIIs) attracted 2.01 times subscription while the quota for non-institutional investors got subscribed 1.76 times.

The IPO is a fresh issue of up to Rs 302 crore and an offer-for-sale of up to 1,17,56,910 equity shares. The offer concludes on Friday. Price band for the IPO is Rs 160-169 a share.

Gandhar Oil Refinery (India) Ltd on Tuesday said it has raised a little over Rs 150 crore from anchor investors.

Those offering shares in the OFS include promoters -- Ramesh Babulal Parekh, Kailash Parekh, and Gulab Parekh -- and other shareholders, Fleet Line Shipping Services LLC, Denver Bldg Mat & Décor TR LLC, and Green Desert Real Estate Brokers.

Proceeds from the fresh issue component will be used for payment of debt, purchase of equipment and for civil work required for expansion in the capacity of automotive oil at the Silvassa plant.

In addition, the funds will be used for expanding capacity of petroleum jelly and accompanying cosmetic product division at the company's Taloja plant as well as expansion in capacity of white oils by installing blending tanks at the plant. Proceeds will also be used for funding working capital requirements.

Nuvama Wealth Management (formerly known as Edelweiss Securities) and ICICI Securities are the managers to the offer.