Riding high on bumper subscription, Gandhar Oil Refinery shares clocked a sensational listing on Thursday with premiums of over 75 percent.
The white oil manufacturer debuted at ₹295 on BSE, up 75 percent over the issue price of ₹169 per share. On NSE, it opened at ₹298, surging 76 percent.
In early trade, Gandhar Oil prices skyrocketed further to hit the upper circuit limit of 20 percent at ₹344, doubling investor wealth within minutes.
The enthusiastic IPO response mirrors positive sentiment around the lubricants and petro product supplier. Its public offer last week got subscribed 64 times, led by huge interest from institutional buyers.
Gandhar Oil counts leading FMCG names like P&G, Dabur, and Marico among its customers. Its capacity expansions across units also garnered investor interest.
The company plans to use IPO proceeds for debt payment, plant equipment purchases, and working capital needs. Its revenue grew 15 percent in FY23 on widening margins.
Analysts say Gandhar Oil’s established B2B model provides stable growth visibility justifying premium valuations. Its niche positioning in an otherwise commoditized oil refining space also works in favor.
As market dynamics improve, the company aims to diversify further into allied specialty chemicals and downstream products. While competition is set to heighten, Gandhar Oil’s first-mover advantage and proven execution abilities could help maintain leadership.
