Mumbai based Specialty Oil Company Gandhar Oil Refinery files DRHP with SEBI for the proposed IPO; Key Details here

Gandhar Oil Refinery is into Consumer Specialty Oil and is looking raise funds through Fresh Issue and Offer For Sale

Gandhar Oil RefineryIPO: Fresh Issue of Equity shares aggregating up to Rs.357 crores. Offer of Sale of 12,036,380 Equity Shares through public issue IPO

Gandhar Oil Refinery IPO: Gandhar Oil Refinery (India) Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 2 per share via initial public offering.

Initial Public Offer comprising of a Fresh Issue of Equity shares aggregating up to Rs 357 Cr and an Offer for Sale of up to 12,036,380 Equity Shares. Edelweiss Financial Services, ICICI Securities have been appointed as lead merchant bankers for the proposed IPO. It has appointed Link Intime (India) Pvt. Ltd. as Registrar and Share transfer Agent. Company is yet to finalize issue size and some other important details relating to the IPO.

Details about upcoming IPO:
As per the details available in DRHP, fundraising will consist of an Fresh Issue aggregating Rs. 357 Crs and offer-for-sale (OFS) of up to 12,036,380 equity shares .

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Objects of the issue:
1) Investment into Texol by way of a loan for financing the repayment/pre-payment of a loan availed by Texol from the Bank of Baroda - Rs22.7 cr, 2) Capital expenditure through purchase of equipment and civil work required for expansion in capacity of automotive oil at Silvassa Plant - Rs27.7 cr, 3) Working Capital - Rs185 cr., and 4) General Corporate Purpose.

Promoters of Gandhar Oil Refinery are Ramesh Babulal Parekh, Samir Ramesh Parekh and Aslesh Ramesh Parekh and holds 87.5% stake in the company.

About Company:
Gandhar Oil Refinery is supplier of consumer and healthcare raw materials to end-industries. Product portfolio is of over 440 products primarily across the personal care, healthcare and performance oils, lubricants and process and insulating oils divisions and sells under the “Divyol” brand. Company is India’s largest manufacturer of white oils by revenue in Financial Year 2023, including domestic and overseas sales and is one of the top five players globally in terms of market share in the CY22.

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About Industry:
The global specialty oil market value, estimated at $129.90 billion in 2023, is expected to grow to $154.0 billion by 2028, at a CAGR of 3.5%. The Indian specialty oil market is estimated to be $7.33 billion in 2023 and reach $9.30 billion by 2028, at a CAGR of 4.9%. White oil is expected to be the fastest-growing segment over the forecast period, given the favourable outlook for end-user industries amid rising focus on product safety and awareness about health and hygiene (Source: CRISIL Report; also see “Industry Overview – Overview of the Indian specialty oil industry” on page 170).

Source: SEBI, BSE, NSE, DRHP, Gandhar Oil Refinery, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.