Gokul Refoils and Solvent IPO

Thebullishtrends: Gokul Refoils and Solvent IPO opens on 8th May'08 with an initial public offering of 71,58,392 equity shaers of Rs.10/- each with a price band of Rs.175 to Rs.195 per equity shares IPO will close on 13th May'08. Gokul Refoils Oil and Solvent IPO has got mixed reponse on the first day of its opening entire IPO portion has subscribed only .16 times on the first day.

Gokul Refoils and Solvent is primarily engaged in the business of solvent extraction, refining of edible oils and vanaspati manufacturing. At present the company has 680 TPD of seed processing, 600 TPD of solvent extraction, 1200 TPD of refining and 200 TPD of vanaspati manufacturing capacities.

Gokul Refoils plans to utilize the proceeds for - setting up a new 1500 TPD Soyabean processing plant near Gandhidham, Gujarat; expansion of the existing edible oil refinery at Surat,investment in Singapore subsidiary,to meet the long term working capital and to brand building activities and also investment in increasing warehousing capacities and continuous capex for exising units;

ICRA has assigned Grade "3/5" to the IPO which states that the fundamentals of the IPO is average. Gokul Refoils valuations are equavelent to it peers. But the investor fancy on this sector is very poor as the profitability margins depends on many factors. One can expect moderate gains on the listing of these shares. Don't expect higher profits.

News Now