Shares of white oil manufacturer Gandhar Oil Refinery (India) Ltd listed with a bang on Thursday. The stock rallied over 76 per cent, against the issue price of Rs 169. Gandhar Oil Refinery made its debut at Rs 295.40, a jump of 74.79 per cent from the issue price on the BSE. Later, it further climbed 103.90 per cent to Rs 344.60. On the NSE, the stock listed at Rs 298, up 76.33 per cent.
Shares of the company climbed 103.57 per cent to Rs 344.05 apiece. Gandhar Oil Refinery's market valuation was Rs 3,011.45 crore during the morning trade.
The IPO of Gandhar Oil Refinery was subscribed 64.07 times on November 24, the final day of bidding, with bids coming in for 136.1 crore shares against 2.12 crore shares on the block. Qualified institutional buyers booked 129 times their quota of shares, retail investors booked 28.95 times, and high net-worth individuals 62.2. times. The IPO was a fresh issue of up to Rs 302 crore and an offer-for-sale of up to 1,17,56,910 equity shares.
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 unit. The funds will also 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.
Gandhar Oil Refinery enjoys long-term relationships with several domestic and global customers, including Procter & Gamble, Unilever, Marico, Dabur, Encube, Patanjali Ayurved, Bajaj Consumer Care, Emami, and Amrutanjan Healthcare. Its revenue from operations grew 15.13 per cent to Rs 4,079.4 crore in FY23 from Rs 3,543.3 crore in FY22. Profit after tax (PAT) jumped 30.3 per cent to Rs 213.17 crore from Rs 163.58 crore in the same period.
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