Gandhar Oil Refinery lists at 76% premium, touches high of Rs 344.05 apiece

Gandhar Oil Refinery shares opened today, November 30, on the NSE at Rs 298 apiece, which is 76.33 per cent higher than the issue price of Rs 169 apiece. The shares of Gandhar Oil Refinery touched a high of Rs 344.05 apiece during the debut trade, which is 103.54 per cent higher than the issue price.

Gandhar Oil IPO received a robust response from investors, with experts highlighting its reasonable valuation compared to industry peers, a scalable business model, and a dominant market share in the niche white oils segment. The strong demand reflects the company's strategic positioning in the market.

IPO size and allocation details: Gandhar Oil Refinery India IPO was a book-built issue of Rs 500.69 crores, combining a fresh issue of 1.79 crore shares and an offer for sale of 1.18 crore shares. The allocation included portions for Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), Retail Individual Investors (RIIs), and Anchor investors.

Company overview and global presence: Incorporated in 1992, Gandhar Oil Limited is a leading manufacturer of white oils, offering a diverse product portfolio under the brand name Divyol. With products spanning personal care, healthcare and performance oils, lubricants, and process and insulating oils, the company serves a wide range of industries globally. As of June 2022, Gandhar Oil has reached over 100 countries, boasting a clientele that includes renowned companies such as Procter & Gamble, Unilever, and Marico.

“As expected, a solid listing gains above our expectations for a leading manufacturer of white oils, Gandhar Oil mainly on the back of reasonable IPO valuation when compared to its peers which were trading high. Post listing, we believe the valuation gap has narrowed to Gandhar peers and hence expecting limited upside from the current levels, hence we had recommended allotted investors to book listing day profits which is over and above our expectations,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.