Gandhar Oil shares list at 74.79% premium over IPO price; Fedfina fails to enthuse investors

Amid investor frenzy for Tata Technologies Ltd shares, the scrips of two more companies -- Fedbank Financial Services Ltd and Gandhar Oil Refinery (India) Ltd -- also made their market debut today.

Shares of lubricants company Gandhar Oil Refinery were listed at a 74.79% premium on the BSE, giving investors a ₹126.40 return on each share on listing only. The IPO of speciality oils and lubricant manufacturers managed to garner good responses from investors despite strong demand for Tata Tech shares. The shares were offered at a price band of ₹160-169 apiece and the lot size was ₹88 shares and thereafter. The ₹500 crore public issue of the leading manufacturer of white oils was subscribed 64.07 times on the final day of bidding.

Shares of Fedfina, however, failed to attract investors as scrip listed below the upper price band at a discout of 1.61% at ₹137.75.

Post listing, Gandhar Oil shares surged to an intra-day high of ₹344, while the market capitalisation surged to ₹2,979.65 crore. At the time of filing the story, 15.76 lakh shares were trading on the counter.

The Fedfina shares surged to an intra-day high of ₹139.55, but that's still below the upper price band for the IPO. With this, the Non-Banking Financial Company's (NBFC) market cap stands at ₹4,990.14.

The public issue of NBFC promoted by Federal Bank was subscribed 2.2 times on the final day of bidding, November 24. The QIB category of the ₹1,092 crore IPO, which was offered at a price band of ₹133 to ₹140 per equity share, was subscribed the most at 3.48 times, followed by 1.49 times in the institutional portion. The quota reserved for employees was subscribed 1.88 times.

This is the second attempt by FedFina to list its shares on the stock exchanges as the NBFC had submitted offer documents with SEBI last year, but the company pulled out due to unfavourable market conditions. The company this time re-filed the document as the earlier regulatory approval for the listing lapsed.

About the Gandhar Oil Refinery (India), the company is India’s largest manufacturer of white oils by revenue in FY22, including domestic and overseas sales and is one of the top five players globally in terms of market share in CY21, as per the Crisil report. As of June 30, 2022, the product suite comprises over 350 products primarily across the personal care, healthcare and performance oils (PHPO), lubricants and process and insulating oils (PIO) divisions under the “Divyol” brand.

The products are sold in over 100 countries across the globe, catering to 3,529 customers in FY22, including leading Indian and global companies such as Procter & Gamble (P&G), Unilever, Marico, Dabur, Encube, Patanjali Ayurved, Bajaj Consumer Care, Emami and Amrutanjan Healthcare.