Gandhar Oil Refinery's IPO Fully Subscribed on Day 1

22 Nov 2023 , 09:42 PM

On the inaugural day of Gandhar Oil Refinery’s Rs 198-crore initial public offering (IPO), the subscription reached full capacity, with bids pouring in for 11,76,17,544 shares against the offered shares of 2,12,43,940.

The public issue demonstrated robust demand, recording an overall subscription of 5.54 times, primarily driven by active participation from retail and non-institutional investors (NIIs). Notably, NIIs subscribed 7.70 times the issue, while retail investors secured a subscription rate of 6.92 times, as per available data.

In contrast, qualified institutional buyers (QIBs) displayed a more conservative response, subscribing 1.35 times the issue portion on the first day of the IPO subscription.

The company had earmarked 50% of the net issue portion for QIBs, 15% for NIIs, and the remaining 35% for retail investors.

Gandhar Oil IPO’s price band was set at Rs 160-Rs 169 per share, with a lot size of 88 shares. The minimum investment required for retail investors stood at Rs 14,872.

The white oil manufacturer aims to raise Rs 500.69 crore through the public offer, comprising a fresh issue of 1.78 crore shares valued at Rs 302 crore and an offer-for-sale of 1.17 crore shares worth Rs 198.69 crore. The IPO subscription reflects the positive market sentiment towards Gandhar Oil Refinery’s public offering.