Gokul Refoils and Solvent, has received good response for its initial public offer (IPO) of 71,58,392 equity shares of Rs 10 each for cash at a premium with a price band of Rs 175 to Rs 195 per equity share. The issue which opened for subscription on May 8, 2008 has over subscribed by 4.26 times.
Public offer has received bids for 3.05 crore shares as against 71.58 lakh shares on offer.
The Issue received an overwhelming response from QIBs with oversubscription of 2.72 times; both retail and High Net worth Individual portions were oversubscribed by 6.58 and 5.59 times respectively.
The net issue to the public comprises of 70, 83,392 equity shares and 75,000 equity shares have been reserved for the employees. The issue will constitute 27.14% of the fully diluted post issue paid up equity share capital of the company. The face value of equity shares of Rs. 10 and the floor price is 17.5 times of the face value and the cap price is 19.5 times of the face value. The company will raise Rs.139 crores at the upper end of the price band.
The capital raised from the issue will be deployed:
* To set up a new 1500 TPD Soyabean processing plant near Gandhidham
* Expansion of its existing edible oil refinery at Surat from 100 TPD to 400TPD
* Investment in its wholly owned Singapore subsidiary
* Funding part of its long term working capital,
* Investment in increasing warehousing capacities and continuous Capex for existing units
Anand Rathi Financial Services Limited and Intensive Fiscal Services Private Limited are the Book Running Lead Managers to the Issue and Intime Spectrum Registry Limited is the registrar to the issue.
The shares will be listed on Bombay Stock Exchange and National Stock Exchange of India.
Gokul Refoil is primarily engaged in the business of Solvent Extraction, refining of Edible oils and Vanaspati manufacturing. The company’s manufacturing facilities at Sidhpur, Gandhidham & Surat, have the ability to provide comprehensive range of oil products.