Gokul Refoils & Solvent IPO Review

A new IPO is there for the Indian markets. Gokul Refoils and Solvent is planning to come put with its IPO or Initial Public offering.

When will the Gokul Refoils and Solvent IPO open for subscription?
The Gokul Refoils and Solvent IPO will be opening on May 8, 2008. It will close on May 13.

What is the size of Gokul Refoils and Solvent IPO?
A total of around 71.6 lakhs equity shares will be offered to the public through the 100% book building process. The shares will be listed on both NSE and BSE.

What is the price band of the Gokul Refoils and Solvent IPO?
The price band for Gokul Refoils and Solvent IPO is set in the range of Rs. 175 to 195 per share. The face value of each share will be Rs. 10.

Is there any quota for employees for Gokul Refoils and Solvent IPO?
Yes, around 75,000 shares will be reserved for the employees. The remaining, around 70 lakhs shares will be offered to the public. The total public standing post IPO will be a little above 27%.
Qualified institutional buyers shall be allocated 50 per cent of the issue. From and out of the QIB portion 5 per cent for mutual funds, 15 per cent to non-institutional bidders and 35 per cent to retail investors.

What is the business of the Gokul Refoils and Solvent Company?
As per Economic Times, The company 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.

Where will the Gokul Refoils and Solvent IPO proceeds be used?
The company 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; funding part of the long term working capital; brand building activities; investment in increasing warehousing capacities and continuous capex for exising units; general corporate purposes and for public issue expenses.

What is the rating for Gokul Refoils and Solvent IPO?
ICRA has assigned "3 out of 5" grading to the Gokul Refoils and Solvent IPO.

The book running lead managers to the issue are Anand Rathi and Intensive Financial Services.

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