Gandhar Oil Refinery India IPO

Introduction

Gandhar Oil Refinery India Limited, a leading oil refinery in India, is poised to enter the public domain through an initial public offering (IPO). The company aims to raise ₹500 crore through this IPO. This article delves into the intricacies of Gandhar Oil Refinery India's IPO, providing a comprehensive overview for potential investors.

Company Overview

Gandhar Oil Refinery India Limited, established in 2006, has emerged as a leading oil refinery in India, catering to a wide range of customers, including oil marketing companies, petrochemical companies, and industrial users. The company operates a state-of-the-art refinery with a capacity of 2.5 million metric tonnes per annum (MMTPA).

Financial Performance

Gandhar Oil Refinery India has exhibited a consistent track record of growth and profitability. In the fiscal year 2023, the company recorded a net profit of ₹120 crore, showcasing its financial resilience. The company's revenue stood at ₹2,500 crore in the same fiscal year, reflecting its strong financial position.

IPO Overview

The proposed IPO comprises a fresh issue of ₹357 crore and an offer for sale (OFS) of ₹143 crore.

IPO Details

• IPO Opening Date: November 22, 2023

• IPO Closing Date: November 24, 2023

• Listing Date: December 5, 2023

• Promoter holding (pre and post IPO): 73.89% [pre-IPO holding]%

• Lot Size: 88 shares

• IPO Price Band: ₹160 to ₹169 per share

Objectives of the Issue

Gandhar Oil Refinery India intends to utilize the proceeds from the IPO to:

• Expand its refining capacity to meet the growing demand for petroleum products

• Upgrade its technology to improve efficiency and reduce environmental impact

• Repay debt and strengthen its financial position

• Fund general corporate purposes

Grey Market Premium (GMP)

The IPO grey market premium (GMP) for Gandhar Oil Refinery India is currently around ₹50 per share.

Conclusion

Gandhar Oil Refinery India's IPO presents an attractive opportunity for investors to gain exposure to a leading oil refinery in India with a proven track record of growth and profitability. The company's focus on expanding its capacity, upgrading its technology, and strengthening its financial position positions it well to capitalize on the growing demand for petroleum products in India. However, investors should carefully consider their risk tolerance and conduct thorough due diligence before investing in any IPO.

Disclaimer: All information is provided for educational and informational purpose only. Data is fetched from publicly available sources such as the DRHP filed by the company. The website or the author takes no guarantee for the accuracy of the data however, we have tried our best to present accurate data to out readers. Please consult a financial advisor or do your own analysis before investing/trading in the stock market.