Gandhar Oil Refinery IPO subscribed 5.52 times on first day of offer

New Delhi: The initial public offer of Gandhar Oil Refinery (India) got fully subscribed within hours of opening for bidding on Wednesday and later ended with 5.52 times subscription.

The Rs 500.69 crore IPO received bids for 11,72,85,168 shares against 2,12,43,940 shares on offer, translating into 5.52 times subscription, as per data available with the NSE.

The portion for non-institutional investors got subscribed 7.70 times while the category for Retail Individual Investors (RIIs) attracted 6.89 times subscription. The quota for Qualified Institutional Buyers (QIBs) received 1.35 times subscription.

The IPO is a fresh issue of up to Rs 302 crore and an offer for sale of up to 1,17,56,910 equity shares. The offer concludes on Friday. The price band for the IPO is Rs 160-169 a share.

Gandhar Oil Refinery (India) Ltd on Tuesday said it has raised a little over Rs 150 crore from anchor investors.

Those offering shares in the OFS include promoters -- Ramesh Babulal Parekh, Kailash Parekh, and Gulab Parekh -- and other shareholders -- Fleet Line Shipping Services LLC, Denver Bldg Mat & Décor TR LLC, and Green Desert Real Estate Brokers.

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 plant.

In addition, the funds will 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.

Nuvama Wealth Management (formerly known as Edelweiss Securities) and ICICI Securities are the managers to the offer.