Gandhar Oil's shares debuted on the market with a strong 76 per cent premium over the IPO issue price of Rs 169. The shares of the company listed at Rs 298 on the National Stock Exchange (NSE) and Rs 295.4 on the Bombay Stock Exchange (BSE).

It may be noted that ahead of its stock market debut, shares of Gandhar Oil were trading at a premium of Rs 72 on the grey market. But shares of the company have outperformed GMP trends and listed Rs 129 higher than the issue price.

Gandhar Oil's initial public offering (IPO) garnered a subscription demand of 64 times, surpassing expectations, primarily due to its attractive valuations.

Following the solid listing, Rajnath Yadav, research analyst at Choice Broking, said, “We had assigned a *SUBSCRIBE* rating for the IPO of Gandhar Oil Refinery (India) Ltd. Today this stock got listed on the exchange at a premium of around 75 per cent. At CMP of Rs. 304, it is trading at a P/E multiple of 16.9x. Considering the growth outlook and profitability margins, currently the stock is fairly valued, thus investor's advised to book profit. Fresh buying is not recommended at this levels.”

Meanwhile, Shivani Nyati, Head of Wealth at Swastika Investmart Ltd, said, “Gandhar Oil Refinery India Limited made its stock market debut, by listing on the BSE and NSE at Rs 298 per share, 76 per cent higher than its IPO price of Rs 169. This strong response from investors could be due to a number of factors, including the company's strong track record of growth and profitability, its diversified customer portfolio, and its strong distribution network.”

“Overall, the listing of Gandhar Oil Refinery India Limited was a success. The company's strong fundamentals, robust demand for the IPO, and strong listing price suggest that the company is well-positioned for growth in the future. However investors may consider to book profit in it once,” Nyati said.

The proceeds from the fresh issuance, amounting to Rs 357 crore, will be utilised for various purposes, including loan repayment/pre-payment, equipment purchase, civil work, capacity expansion in automotive oil, petroleum jelly, and white oils through the installation of blending tanks. Additionally, the funds will cater to working capital requirements and general corporate purposes.Bangalore Wealth Management

Gandhar Oil, a prominent manufacturer of white oils, has been increasingly focusing on consumer and healthcare end-industriesKolkata Investment. With a product portfolio exceeding 350 items, primarily in personal care, healthcare, performance oils, lubricants, and process and insulating oils under the Divyol brand, the company has positioned itself as India's largest white oil manufacturer by revenue in FY22. Globally, it ranks among the top five players by market share in CY21.

The company operates three manufacturing facilities with a total annual production capacity of 497,403 KL as of June 30, 2022 (enhanced to 522,403 KL in October 2022). These facilities are located in Taloja, Maharashtra, the Union Territory of Silvassa, Dadra and Nagar Haveli, Daman and Diu, and Sharjah, United Arab Emirates.Jaipur Wealth Management