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Gandhara Oil IPO Debut
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Gandhara Oil IPO Debut: Big success with 76% premium

Gandhara Oil IPO Debut

Gandhara Oil IPO Debut:

It was an impressive scene on Dalal Street as Gandhar Oil Refinery (India) Ltd made its stock market debut, with its shares listed at a 76% premium to the IPO issue price of Rs 169. As soon as the company’s shares came in, the excitement increased. Revealed. at Rs 298 on the National Stock Exchange (NSE) and Rs 295.4 on the Bombay Stock Exchange (BSE), which is above market expectations.

Gandhara Oil IPO Debut: Great performance of Gandhara oil

Expectations regarding the IPO were clear, with shares trading at a premium of Rs 72 in the gray market. However, the actual debut surpassed gray market premium (GMP) trends, with the shares listing at Rs 129 above the issue price. The IPO received an overwhelming response and the subscription demand reached an astonishing 64 times.

Gandhara Oil IPO Debut: Analyst Insights and Recommendations

Advising a cautious approach post-listing, Rajnath Yadav, research analyst at Choice Broking, said, “At a CMP of Rs. 304, it is trading at a P/E multiple of 16.9x. Considering the growth outlook and profitability margins, the stock is currently fairly valued, so investors are advised to book profits. New purchases are not recommended at this stage. This sentiment was echoed by Shivani Nyati, Head of Wealth, Swastik Investmart Ltd, who highlighted Gandhaar Oil’s strong fundamentals and profitability, but suggested investors consider profit booking.

Gandhara Oil IPO Debut

Gandhara Oil IPO Debut: Use of IPO proceeds

The IPO successfully raised Rs 357 crore earmarked for various purposes. These include capacity expansion in automotive oil, petroleum jelly and white oil through loan repayment/prepayment, equipment purchase, civil works and installation of blending tanks. The funds will also meet working capital requirements and general corporate purposes.

Gandhara Oil IPO Debut: Gandhara Oil’s strategic focus and positioning

Known for its white oils, Gandhara Oil has strategically positioned itself in the consumer and healthcare sectors. With a diverse product portfolio of over 350 items, the company dominates in personal care, health care, performance oils, lubricants & process and insulating oils under the Divyol brand. As of FY22, it is India’s largest white oil producer by revenue and ranks among the top five global players by market share in CY21.

Gandhara Oil IPO Debut: Financial Snapshot and Operational Efficiency

Gandhar Oil reported revenue of Rs 1070 crore, as well as net profit of Rs 44.8 crore in the June quarter. The company operates three manufacturing facilities with a total annual production capacity of 497,403 KL by June 30, 2022 (expanded to 522,403 KL in October 2022). These facilities are strategically located in Taloja, Maharashtra, Union Territory of Silvassa, Dadra & Nagar Haveli, Daman & Diu and Sharjah, UAE.

Gandhara Oil IPO Debut: A strong foundation for future growth

Gandhara Oil’s successful IPO listing, coupled with strong demand and substantial premium, positions the company for significant growth. Investors are advised to proceed with caution keeping in mind the current valuations and expert recommendations. As the company continues its focus on expansion and innovation, the future looks promising for Gandhar Oil Refinery (India) Limited.

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