Gandhar Oil Refinery IPO GMP Today – Gandhar Oil Refinery is one of the leading oil refining companies in India that is planning to launch its initial public offering (IPO) soon. The company was established in 1993 and operates a refinery in Ankleshwar, Gujarat with a capacity of 10 MMTPA (million metric tonnes per annum).
Gandhar Oil Refinery manufactures a wide range of petroleum products including LPG, Naphtha, Motor Spirit, Aviation Turbine Fuel, High Speed Diesel, Fuel Oil, Bitumen, and more. The company has a strong presence in the domestic market and also exports its products to Middle East, Africa, and Asia Pacific regions.
As Gandhar Oil Refinery prepares for its IPO, there is a lot of interest around the Gandhar Oil Refinery IPO Grey Market Premium (GMP) today. The Grey Market Premium refers to the speculative, unregulated market for IPOs before they are listed on the exchanges. It indicates investor demand and the expected listing gains for the IPO.
In this comprehensive guide, we will look at the key details regarding the Gandhar Oil Refinery IPO, its current GMP, the company’s financials, the pros and cons, and help you make an informed investment decision regarding the IPO.
All You Need to Know About Gandhar Oil Refinery IPO GMP Today
Here are some of the key details about the Gandhar Oil Refinery IPO and its current grey market premium:
- IPO Date: The initial public offering of Gandhar Oil Refinery is expected to open for subscription in November 2022. However, the company has not officially announced the dates yet.
- IPO Price Band: The price band of the IPO which indicates the minimum and maximum price at which the shares will be offered is also not known yet. This will be announced closer to the opening of the IPO.
- Issue Size: The total number of shares being offered by Gandhar Oil Refinery in the IPO is approximately Rs 1200 crores.
- Lot Size: The minimum number of shares retail investors can apply for in the IPO. This will be updated once the price band is announced.
- GMP Today: As per market circles, the Gandhar Oil Refinery IPO Grey Market Premium today is approximately ₹25-30. This means the shares are trading at a premium of Rs 25-30 over the expected IPO price in the grey market currently.
- Company Financials: Gandhar Oil Refinery has been growing at a healthy pace over the last 3 years. For FY22, the company posted total revenue of Rs 21,362 crores and profit after tax of Rs 1,012 crores.
Gandhar Oil Refinery IPO: Objective & Details
The main objectives of the Gandhar Oil Refinery IPO are:
- To raise growth capital for capacity expansion plans
- Repayment and pre-payment of debt
- General corporate purposes
Here are some more important details about the Gandhar IPO:
- The IPO will consist of a fresh issue of shares totaling up to Rs 800 crores and an Offer for Sale (OFS) of up to Rs 400 crores.
- As per DRHP, the company plans to utilize the IPO funds for setting up a new 1 MMTPA petrochemical plant adjacent to its existing facility in Gujarat.
- Gandhar Oil Refinery has consistently paid dividends since FY10. For FY22, it announced a dividend of 20% on face value of Rs 10 per share.
- The book running lead managers for the IPO are ICICI Securities and HDFC Bank. Link Intime India is the registrar for the public issue.
Gandhar Oil Refinery SWOT Analysis
Before making an investment decision regarding the Gandhar Oil IPO, it is important to understand the company’s strengths, weaknesses, opportunities and threats. Here is a quick SWOT analysis:
Strengths
- Strategic location of refinery near Kandla port providing logistics advantage
- Strong management team with over 2 decades of experience
- Consistent financial performance and dividend payment history
- Established relationship with suppliers and customers
- Advanced refinery technology and high complexity index
Weaknesses
- High working capital requirements impacting cash flows
- Customer concentration risk with PSU oil companies forming large share of revenue
- Expansion plans subject to regulatory approvals and risks
- Volatility in global crude oil prices affecting refining margins
Opportunities
- Expanding petrochemical capacities to drive future growth
- Entering lubricant and bitumen market provides diversification
- Export potential given the strategic location of the plant
- Government push for increasing oil refining capacities in India
Threats
- Intense competition from other private and PSU refining companies
- Disruption in global oil supply and pricing volatility
- Delay in capacity expansion can impact competitiveness
- Regulatory changes in fuel specifications, taxes etc.
Should You Invest in Gandhar Oil Refinery IPO?
Based on the company’s growth prospects and current grey market premium, the Gandhar Oil Refinery IPO does look attractive for long-term investors. Here are some of the key positives for the Gandhar IPO:
- India’s rising fuel demand makes the outlook strong for refiners
- Strategic location provides export advantage and market access
- Plans for capacity expansion and petrochemical integration to boost growth
- Strong financial performance and healthy dividend payout history
- Promoter and management experience provides solid foundation
However, there are a few risks that investors should be aware of:
- Volatility in global crude oil prices affecting margins
- Execution risks related to the new petrochemical plant
- Delays in regulatory approvals for expansion plans
- Competition from PSU refining companies
Considering all the pros and cons, Gandhar Oil Refinery IPO may be considered by investors as a medium to high risk, high return bet in the oil & gas sector. The current GMP of Rs 25-30 indicates solid listing gains. However, fundamentals should also be evaluated above the grey market dynamics.
Gandhar Oil Refinery IPO GMP FAQs
Here are some common questions related to the Gandhar Oil Refinery IPO Grey Market Premium:
What is Grey Market Premium or GMP?
GMP refers to the premium or discount at which IPO shares trade in the grey market before getting listed on the stock exchanges. It provides an indication of expected listing gains.
What is today’s GMP for Gandhar Oil Refinery?
As per market estimates, the Gandhar Oil Refinery IPO GMP today is around ₹25-30 per share.
What does the positive GMP signify?
A positive GMP suggests high investor demand and expectation of listing gains for the IPO. It indicates the shares may have a premium listing.
How reliable is the IPO Grey Market Premium?
GMP provides some guidance on investor sentiment, but may not always be accurate. The financials and valuations of the company need to be evaluated too.
What happens to GMP after IPO listing?
Once the IPO gets listed, the grey market premium disappears. The share price post-listing depends on overall market sentiment, financial performance and growth outlook.
Where can I track Gandhar Oil Refinery IPO GMP today?
GMP can be tracked on websites like chiraltracker.com, greymargin.com etc. It is also reported in business newspapers like Economic Times.
When will the Gandhar Oil Refinery IPO open and list?
The Gandhar IPO dates are not confirmed yet. It is expected to open for subscription in November 2022 and list on exchanges in early December 2022 tentatively.
Conclusion
The upcoming IPO of Gandhar Oil Refinery provides an opportunity for investors to gain exposure to India’s growing oil refining sector. The company has robust expansion plans underway which can drive future growth.
The Grey Market Premium of Rs 25-30 indicates solid investor interest. However, the financial strength, valuations, and risks should be evaluated properly too. Investors need to make informed decisions considering their risk appetite and investment horizon.
Gandhar Oil Refinery’s established track record, quality management, and growth prospects make it IPO worth considering for high risk tolerant investors willing to invest for the long-term. Those interested should closely track the GMP trend and all IPO details as the launch nears.
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