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Fedbank and Gandhar Oil IPOs signal divergent market sentiment

EditorPollock Mondal
Published 27/11/2023, 08:24 pm
© Reuters.

The upcoming week is pivotal for investors tracking the initial public offerings (IPOs) of Fedbank Financial Services and Gandhar Oil Refinery, as both companies approach their respective listing dates on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). While Fedbank's IPO allotment basis is set to be finalized by Tuesday, November 28, 2023, with successful bidders receiving share allotment notifications by Wednesday, November 29, 2023, Gandhar Oil's strong investor interest is reflected in a significant grey market premium (GMP).

The Fedbank offering, which took place from November 22-24, was subscribed at an overall rate of 2.20 times. Despite this interest, the GMP fell to zero, hinting at a potential listing at par value this coming Friday. This cautious investor sentiment may be influenced by mixed brokerage recommendations stemming from the Reserve Bank of India's new guidelines on unsecured loans and Fedbank's position as one of the lowest cost borrowers in its sector for the fiscal year 2023. Investors can check their allotment status on the BSE website or through Link Intime India's portal.

In contrast, Gandhar Oil Refinery's IPO has demonstrated robust demand, with an oversubscription rate of 64.07 times on the final bidding day. The GMP suggests a potential listing gain of ₹75 per share or 44.38% over its issue price of ₹169. The public offering includes fresh equity issuance worth ₹302 crore and an offer for sale (OFS) by promoters and companies like Fleet Line Shipping Services LLC. Retail investors were required to invest a minimum of ₹14,872 to participate. The funds raised are earmarked for debt reduction and expanding automotive oil production capabilities ahead of its stock market debut on December 5.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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