Gandhar Oil Refinery (India) Receives SEBI Approval for IPO Launch
Gandhar Oil Refinery (India), a leading manufacturer of white oils based on revenue, has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its planned initial public offering (IPO). The IPO will consist of a fresh issue as well as an offer for sale (OFS), with the price range and important dates to be announced soon.
On June 23, 2023, Gandhar Oil Refinery received an “observation letter” from SEBI regarding its IPO, following the filing of its draft prospectus on December 23 of the previous year.
The IPO comprises a fresh issue valued at ₹357 crore and an offer for sale (OFS) of up to 12,036,380 equity shares by existing shareholders. Promoter Selling Shareholders, namely Ramesh Babulal Parekh, Kailash Parekh, and Gulab Parekh, will offload 6.75 million equity shares, while existing investors such as Green Desert Real Estate Brokers, Denver Bldg Mat & Décor TR LLC, Fleet Line Shipping Services LLC, IDFC First Bank Limited, and Amitabh Mishra will sell up to 5.27 million equity shares.
The proceeds from the fresh issue will be utilized for the following purposes: a) providing a loan to Texol for financing the repayment or pre-payment of a loan facility from the Bank of Baroda; b) capital expenditure for equipment and civil work required for expansion projects, including increasing the capacity of automotive oil at the Silvassa Plant, expanding the petroleum jelly and cosmetic product division at the Taloja Plant, and installing blending tanks to expand the capacity of white oils at the Taloja Plant; c) funding working capital requirements; and d) general corporate purposes.
Edelweiss Financial Services and ICICI Securities have been appointed as the book-running lead managers for the IPO.
As per Crisil’s report, Gandhar Oil Refinery is India’s largest manufacturer of white oils in terms of revenue for the fiscal year 2022, encompassing both domestic and overseas sales. It also ranks among the top five players globally in terms of market share in calendar year 2021.
As of June 30, 2022, the company offers a product suite of over 350 products under the “Divyol” brand, spanning personal care, healthcare, performance oils (PHPO), lubricants, and process and insulating oils (PIO) divisions.
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Gandhar Oil Refinery serves customers in more than 100 countries worldwide, with a client base of 3,529 in the fiscal year 2022. Notable clients include prominent Indian and global companies such as Procter & Gamble (P&G), Unilever, Marico, Dabur, Encube, Patanjali Ayurved, Bajaj Consumer Care, Emami, and Amrutanjan Healthcare.
The company operates three manufacturing facilities located in Taloja, Maharashtra; the Union Territory of Silvassa, Dadra and Nagar Haveli; and Sharjah, United Arab Emirates. As of June 30, 2022 (expanded to 522,403 KL in October 2022), these facilities have a combined annual production capacity of 497,403 kL.
About Gandhar Oil Refinery (India):
Gandhar Oil Refinery (India) Limited is engaged in the operation of oil refineries. The company manufactures a range of specialty oils and lubricants, including liquid paraffin, greases, automotive lubricants, petroleum jelly, and rubber processing oils. Gandhar Oil Refinery (India) caters to customers around the globe.
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