Gandhar Oil Refinery India IPO debuts with a 76.33% premium on NSE

Strong listing for Gandhar Oil Refinery (India) IPO, but modest gains after that

Gandhar Oil Refinery (India) IPO had a very robust listing on 30th November 2023, listing at a smart premium of 76.33% on the NSE and on top of that it managed to gain another 1.19% on the listing price of the day. The stock of Gandhar Oil Refinery (India) Ltd closed the day at ₹301.55 per share, a premium of 1.19% over the listing price of ₹300 per share and a premium of 78.43% over the IPO price of ₹169 per share. Certainly, the IPO allottees of Gandhar Oil Refinery (India) Ltd would be laughing all the way to the bank at the close of the first day of listing of the stock. The pattern was exactly similar on the BSE also. On the Bombay Stock Exchange (BSE), the stock of Gandhar Oil Refinery (India) Ltd opened at ₹295.40 per share, a premium of 74.79% over the IPO issue price of ₹169 per share. For the day, the stock closed on the BSE at ₹301.50, an overall gain of 2.06% over the IPO listing price of ₹295.40 per share and a premium of 78.40% over the issue price of ₹169 per share.  On the NSE and the BSE, the stock of Gandhar Oil Refinery (India) Ltd closed the listing day above the listing price of the day, but well below the upper circuit limits.

While the closing price of Gandhar Oil Refinery India IPO on 30th November 2023 was substantially above the IPO issue price on both the stock exchanges, it also closed above the listing price on the BSE and also on the NSE; albeit only marginally higher. For the day, the Nifty closed 37 points higher while the Sensex closed a full 87 points higher as the Nifty closed above the psychological 20,100 mark on hopes that the growth momentum will sustain in India. Both the Nifty and the Sensex showed moderate gains on Thursday, gaining about 12-13 basis points in a single day of trade. That rubbed off on the stock price performance of Gandhar Oil Refinery (India) Ltd, which managed to hold itself after a very strong listing on Thursday.

IPO subscription and pricing details

The stock had seen a very strong subscription in the IPO. The subscription was 65.63X  overall and QIB subscription was at 129.06X. In addition, the retail portion had got subscribed 29.93X in the IPO while the HNI / NII portion also got a healthy subscription of 64.34X. Hence the listing was expected to be fairly strong for the day. However, while the listing was strong, the performance strength got reinforced during the trading day as the stock closed with modest gains of about 12 basis points to 13 basis points over and above the listing price of the day.

The IPO price was fixed at the upper end of the band at ₹169 per share which was anyways along expected lines considering the relatively strong subscription in the IPO. The price band for the IPO was ₹160 to ₹169 per share. On 30th November 2023, the stock of Gandhar Oil Refinery (India) Ltd listed on the NSE at a price of ₹298 per share, a strong premium of 76.33% over the IPO issue price of ₹169 per share. On the BSE also, the stock listed at ₹295.40, a premium of 74.79% over the IPO issue price of ₹169 per share. Here is the Gandhar Oil Refinery (India) Ltd listing story on 30th November 2023.

How the stock of Gandhar Oil Refinery (India) IPO closed on both exchanges?

On the NSE, Gandhar Oil Refinery (India) Ltd closed on 30th November 2023 at a price of ₹301.55 per share. That is a first day closing premium of 78.43% on the issue price of ₹169 per share and also a very modest premium of 1.19% on the listing price of ₹298 per share. In fact, the listing price turned out to be very close to the low price of the day on the NSE and the stock traded for the entire trading day above the opening listing price. On the BSE also, the stock closed at ₹301.50 per share. That represents a first day closing premium of 78.40% above the IPO issue price and also a premium of 2.06% above the listing price on the BSE at ₹295.40 per share.

On both the exchanges, the stock listed strongly above the IPO issue price and also managed to close Day-1 rallying higher, seldom going below the listing price, and eventually closing the day on the higher side. In fact, the opening price turned out to be very close to the low price of the day on the BSE as well as on the NSE. The high price of the day on both the stock exchanges on 30th November 2023 was well below the upper circuit price, and also well below the high price of the day.  In fact, on the NSE, the stock closed with open buying quantity of 14,972 shares, showing a lot of pent up demand for the stock on the listing day. Similar sentiments were echoed on the BSE also.

Price volume story of Gandhar Oil Refinery (India) IPO on the NSE

The table below captures the opening price discovery in the pre-open period on the NSE.

Data Source: NSE

Let us look at how the stock traversed on the National Stock Exchange (NSE) on 30th November 2023. On Day-1 of listing, Gandhar Oil Refinery (India) Ltd touched a high of ₹344.05 per share on the NSE and a low of ₹295.30 per share. The premium to the listing price sustained through most part of the day. While the low price of the day was very near to the IPO opening price, the stock of Gandhar Oil Refinery (India) Ltd closed well below the high price of the day, which went pretty close to the upper circuit for the day. Mainboard IPOs do not have an upper circuit of 5%, unlike SME IPOs since they trade in the normal equity segment and not in the trade to trade segment. In this case, the stock of Gandhar Oil Refinery (India) Ltd had an upper and lower circuit limit of 20% either ways on the listing price of the day.

For the day on the NSE, the upper circuit price was ₹357.60 per share while the lower circuit price was ₹238.40 per share. During the day, the high price of the day at ₹344.05 did manage to get fairly close to the upper band price before correction set in. However, the low price of the day at ₹295.30 per share was also well above the lower band price for the day at ₹238.40 per share. On Day-1 of listing, the Gandhar Oil Refinery (India) Ltd stock traded a total of 380.28 lakh shares on NSE amounting to value of ₹1,177.96 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with very little genuine profit booking visible even towards the end of the trading session. The stock closed the day with pending buy orders of 14,972 shares on the NSE.

Price volume story of Gandhar Oil Refinery (India) IPO on the BSE

Let us look at how the stock traversed on the Bombay Stock Exchange (BSE) on 30th November 2023. On Day-1 of listing, Gandhar Oil Refinery (India) Ltd touched a high of ₹344.60 per share on the NSE and a low of ₹295 per share. The premium to the listing price sustained through most part of the day. While the low price of the day was very near to the IPO opening price, the stock of Gandhar Oil Refinery (India) Ltd closed well below the high price of the day, which went pretty close to the upper circuit for the day. Mainboard IPOs do not have an upper circuit of 5%, unlike SME IPOs since they trade in the normal equity segment and not in the trade to trade segment. In this case, the stock of Gandhar Oil Refinery (India) Ltd had an upper and lower circuit limit of 20% either ways on the listing price of the day.

For the day on the BSE, the upper circuit price was ₹354.45 per share while the lower circuit price was ₹236.35 per share. During the day, the high price of the day at ₹344.60 did manage to get fairly close to the upper band price before correction set in. However, the low price of the day at ₹295 per share was also well above the lower band price for the day at ₹236.35 per share. On Day-1 of listing, the Gandhar Oil Refinery (India) Ltd stock traded a total of 29.06 lakh shares on BSE amounting to value of ₹90 crore during the day.  The order book during the day showed a lot of back and forth with the bias clearly in favour of the buyers, with very little genuine profit booking visible even towards the end of the trading session. The stock closed the day with pending buy orders on the BSE also.

Market capitalization, free float, and delivery volumes

Volumes on the BSE were generally lower than on the NSE, but the trend was once again the same. The order book through the day showed a lot of strength and that almost sustained till the close of trading session, with very little hint of any profit booking even by the close of the trading session. The sharp rally in the Nifty and the Sensex did help the stock to sustain its premium through the day on NSE and on the BSE too; although the overall premium was quite small. That makes it a rather attractive stock after the strong listing on Thursday. On the NSE, out of the total 380.28 lakh shares traded during the first day of trading, the deliverable quantity represented 160.92 lakh shares or a deliverable percentage of 42.32% on the NSE, which is definitely lower than the routine listing day median and hinting at substantial speculative activity on the NSE.

How was the speculative activity on the BSE on the first day of trading? Even on the BSE, out of the total 29.06 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 9.96 lakh shares representing total deliverable percentage of 34.27%, which is sharply lower than the NSE, but substantially lower than the typical listing day median. On the BSE also, there was a lot of speculative trading volumes visible in the counter. Unlike the SME segment stocks, which are on T2T on the day of listing, the mainboard IPOs permit intraday trading even on the day of listing also.

At the close of Day-1 of listing, Gandhar Oil Refinery (India) Ltd had a market capitalization of ₹2,950.78 crore with free-float market cap of ₹649.17 crore. Gandhar Oil Refinery (India) Ltd has issued capital of 978.70 lakh shares with a par value of ₹2 per share.