MUMBAI - Gandhar Oil Refinery India Ltd., the company behind the prominent "Divyol" brand products, is poised to launch its Initial Public Offering (IPO) on Wednesday, November 22, aiming to raise ₹500.69 crore. The offer, which is scheduled to close on Friday, November 24, includes a fresh issue of shares worth ₹302 crore and an Offer for Sale (OFS) of ₹198.69 crore by existing promoters.
The price band for the IPO is set between ₹160 and ₹169 per share. Institutional investors are reserved half of the offer size, while non-institutional and retail investors are allocated 15% and 35%, respectively. Key pre-IPO shareholders like Ramesh Babulal Parekh are divesting stakes, with some entities planning full exits such as Green Desert Real Estate Brokers.
The company's market presence is significant, ranking among the top five globally in the white oil market share for Calendar Year 2022. Gandhar Oil boasts a broad customer base with key clients including Procter & Gamble (NYSE:PG). The funds from the fresh issue are earmarked for a range of initiatives: repaying Texol's loan from Bank of Baroda, funding working capital requirements, general corporate purposes, and capacity expansions at its Silvassa (automotive oil) and Taloja (petroleum jelly and white oils) plants.
Investor interest in the IPO is evident from the Grey Market Premium (GMP), which started at ₹42 and peaked at ₹56 before stabilizing at ₹46. This suggests a potential listing price around ₹215 per share, reflecting a healthy premium over the IPO price band.
Retail investors can apply for minimum lots worth ₹14,872 up to a maximum of ₹1,93,336; there are no upper limit caps for B-HNI and QIB categories. Following the closure of the IPO on November 24, allotment finalization is set for Thursday, November 30, with refunds initiated by Friday, December 1st. Investors can expect demat credits by Monday, December 4th and the company will be listed on December 5th on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
The investments from this IPO are slated to support the company's strategic initiatives including expanding its automotive oil capacity and enhancing its Taloja facility. Post-listing trading dynamics will adhere to mainboard issue norms that allow single share trades after the IPO period concludes.
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