Gandhar Oil IPO subscribed to 18.25 times on Day 3: From GMP to brokerage views, here's all you need to know
GMP: The company's shares in the grey market are trading at a healthy premium of ₹76, indicating a 45 percent premium at listing. However, one must note that grey market premium is only an indicator of how the company's shares are performing in the unlisted market and can change quickly. The ₹501 crore IPO of Gandhar Oil opened for subscription on November 22 and will close on November 24.
The price band for the offer has been set at ₹160-169 per share. A bidder will be able to apply in lots and one lot of the IPO comprises 88 company shares. Minimum amount required for a retail investor to apply for the IPO is ₹14,872 ( ₹169 x 88).
Gandhar Oil is a manufacturer of white oils that caters to the consumer and healthcare end industries. The company offers an extensive range of over 350 products that primarily fall under three categories - personal care, healthcare and performance oils (PHPO), lubricants, and process and insulating oils (PIO) - under the brand name 'Divyol'. The issue comprises of a fresh share sale worth ₹302 crore and an offer for sale (OFS) by existing promoters and shareholders for 1,17,56,910 equity shares aggregating up to ₹200 crore.
Proceeds from the issue will be used for the payment of debt and for the purchase of equipment and civil work required for expansion in the capacity of automotive oil at the Silvassa plant. The firm has raised ₹150.2 crore through its anchor book including Morgan Stanley, Societe Generale, Copthall Mauritius Investment, Whiteoak Capital, Ashoka India Equity Investment Trust, Turnaround Opportunities Fund and other mutual funds and insurance companies. It allocated 88,88,018 equity shares to anchor investors at ₹169 per equity share.
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