Gandhar Oil shares double investor wealth in maiden session; time to book profit?

Shares of Gandhar Oil Refinery noticed a strong shopping for curiosity even after a strong Dalal Road debut, which prolonged its beneficial properties turning it right into a multibagger on itemizing. The inventory greater than doubled traders’ wealth throughout its maiden buying and selling session and attracted traders throughout all of the classes.

Shares of Gandhar Oil Refinery Ltd have been listed at Rs Rs 298, a premium of 76 per cent, over its subject value Rs 169 on the Nationwide Inventory Trade (NSE). The lube maker was listed at a premium of 75 per cent at Rs 295.40 towards the identical subject value on BSE.

Following the itemizing, shares of Gandhar Oil Refinery prolonged its beneficial properties and surged one other 17 per cent to Rs 344.60 on its maiden buying and selling session, taking the general beneficial properties to 104 per cent over its subject value. Nonetheless, the inventory hovered within the tight vary of Rs 295-305 for a lot of the session.

Market members stay divided on the inventory as some think about to carry the counter for a long-term contemplating its robust market share, area of interest enterprise and long-relations with purchasers. Nonetheless, a couple of specialists recommend e book income contemplating higher than anticipated itemizing beneficial properties.

Narendra Solanki, Head – Elementary Analysis, Anand Rathi Shares and Inventory Brokers prompt traders to ‘maintain’ the difficulty as a long run view as per their threat urge for food. “Gandhar Oil Refinery India Ltd Restricted is main market share of the Indian white oils market with important abroad gross sales, centered on the patron and healthcare end-industries,” he mentioned.

Prathamesh Masdekar, Analysis Analyst at StoxBox stays optimistic on the difficulty and recommends traders who’ve acquired allotment to carry shares from a long-term perspective. “It’s nicely positioned in comparison with speciality oil gamers because of its massive publicity to the high-growth white oil market, give attention to the high-margin shopper and healthcare end-user segments,” he mentioned.

Gandhar Oil Refinery (India) bought its main providing within the mounted value vary of Rs 160-169 apiece with rather a lot dimension of 88 fairness shares. The difficulty was open for bidding between November 22 and November 24 to boost about Rs 501 crore, which included a recent share sale of Rs 302 crore and an offer-for-sale (OFS) of as much as 1,78,69,822 fairness shares.

The difficulty was total subscribed a robust 64.07 occasions throughout the bidding course of. The portion for certified institutional bidders was subscribed a whopping 129 occasions, whereas the portion reserved for non-institutional traders noticed 62.33 occasions bidding. The allocation reserved for retail traders booked 28.95 occasions throughout the three-day bidding course of.

Gandhar Oil Refinery India made  a robust inventory market debut as the difficulty was subscribed 64.05 occasions, which is considerably increased than the anticipated, mentioned Shivani Nyati, Head of Wealth at Swastika Investmart. General, the itemizing of Gandhar Oil Refinery India Restricted was a hit, she mentioned.

“The corporate’s robust fundamentals, strong demand for the IPO, and powerful itemizing value recommend that the corporate is well-positioned for development sooner or later. Nonetheless traders might think about to e book revenue in it as soon as,” Nyati added.

Gandhar Oil is a producer of white oils that caters to the patron and healthcare end-industries. The corporate affords an intensive vary of over 350 merchandise that primarily fall beneath three classes – private care, healthcare and efficiency oils (PHPO), lubricants, and course of and insulating oils (PIO) – beneath the model title ‘Divyol’.

As anticipated, a strong itemizing beneficial properties above our expectation for a number one producer of white oils, Gandhar Oil primarily on the again of affordable IPO valuation when in comparison with its friends which have been buying and selling excessive, mentioned Rajan Shinde, Analysis Analyst at Mehta Equities

“Publish itemizing, we imagine the valuation hole has narrowed to Gandhar friends and therefore anticipating restricted upside from the present ranges, therefore we had really useful allotted traders to e book itemizing day income which is over and above our expectations.,” he added.

 

Disclaimer: Enterprise As we speak supplies inventory market information for informational functions solely and shouldn’t be construed as funding recommendation. Readers are inspired to seek the advice of with a professional monetary advisor earlier than making any funding choices.

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