Gandhar Oil Refinery IPO Receives Strong Backing from Anchor Investors

Gandhar Oil Refinery IPO Receives Strong Backing from Anchor Investors

Anchor investors of the Gandhar Oil Refinery gave the company an initial boost and invested ₹150 crores in shares before the company’s Initial Public Offering (IPO) hit the market. So what does this imply? Let’s break it down.

Gandhar Oil Refinery, a player in the oil and gas sector is preparing to offer ownership to the public via an IPO. However, before opening up to everyone anchor investors – institutions or affluent individuals – are allowed to purchase shares. Guess what? These anchor investors have eagerly seized the chance by investing ₹150 crores.

Why is this noteworthy? It signifies that these anchor investors are placing their trust and confidence, in Gandhar Oil Refinery. They firmly believe that it will thrive in the future. For those of us who are not institutional investors, this serves as a positive indication.

It’s similar, to when the popular kids, at school announce that they’re joining a club and everyone else wants to be a part of it too.

Now, for those thinking about joining the party and buying shares when the IPO opens to the public, seeing anchor investors take the lead can be reassuring.

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About Gandhar Oil Refinery

Gandhar Oil Refinery India Limited, renowned for its manufacturing of white oils and lubricants, announced its initial public offering (IPO) on November 22, 2023, with a closing date of November 24, 2023. The Gandhar Oil Refinery IPO includes a fresh issue of equity shares worth ₹302 crore and an offer for sale of 1.18 crore shares by its promoters and existing shareholders. The total issue size is set at Rs 500 crore, with a price range of ₹160 to ₹169 per share, and 35% reserved for retail investors. The IPO will be managed by Edelweiss Financial Services Ltd and ICICI Securities Limited, and listed on the BSE and NSE.

Gandhar Oil Refinery India Limited IPO timetable (Tentative)

Events Date
IPO Opening Date 22 November 2023
IPO Closing Date 24 November 2023
IPO Allotment Date  30 November 2023
Refund initiation  1 December 2023
IPO Listing Date 5 December 2023

Gandhar Oil Refinery India Limited IPO Details

IPO Opening & Closing Date  22 November to 24 November 2023
Face value  ₹2 per Share
Issue Price ₹160 to ₹169 per Share
Lot Size 88 Shares
Price of 1 lot ₹14,872
Total Issue Size 29,626,732 Shares (aggregating up to ₹500.69 Cr)
Offer for Sale 11,756,910 shares of ₹2 (aggregating up to ₹198.69 Cr)
Fresh Issue 17,869,822 Shares (aggregating up to ₹302.00 Cr)
Listing at BSE NSE
Issue Type  Book Built Issue IPO
Registrar Link Intime India Private Ltd

Gandhar Oil Refinery India Limited IPO Lot Details

Applications Lot Shares 
Minimum Lot Investment (Retail) 1 Lot 88
Maximum Lot Investment (Retail) 13 Lot 1144
Minimum Lot Investment (HNI) 14 Lot 1,232
Maximum Lot Investment (HNI) 67 Lot 5,896

According to official IPO offer documents, the company aims to use the net proceeds for day-to-day operational requirements, extending a loan to Texol for repaying their existing Bank of Baroda loan, investing in equipment and construction to expand production at Silvassa and Taloja plants, and meeting general corporate needs.