Gokul Refoils and Solvent IPO was subscribed 0.37 times on the second day of its issue on Friday 9 May 2008. The IPO received bids for 26.69 lakh shares as against 71.58 lakh shares on offer.

The qualified institutional buyers category was subscribed 0.37 times while non institutional investors category was subscribed 0.78 times. Retail individual investors category was subscribed 0.18 times and employee reservation category was subscribed 1 time.

The company has fixed price band of Rs 175-Rs 195 per share for the IPO. The issue opened on 8 May 2008 and will close on 13 May 2008.

The issue comprises a reservation of upto 75,000 equity shares for employees and a net issue to the public of 70,83,392 equity shares. The issue will constitute 27.14% of the fully diluted post issue paid-up capital of the company.

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 tonnes per day (TPD) of seed processing, 600 TPD of solvent extraction, 1200 TPD of refining and 200 TPD of vanaspati manufacturing capacities.

The company plans to utilize the proceeds of the IPO 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. ICRA has assigned Grade 3/5 to the IPO.

The company reported a net profit of Rs 37.82 crore on sales of Rs 1,309.28 crore in eight months ended November 2007.

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