Gandhar Oil Refinery India’s IPO will begin on November 22, a fresh issue component for Rs 302 crore

Gandhar Oil Refinery India IPO | The public issue comprises a fresh issue component of Rs 302 crore and an offer for sale (OFS) of 1.17 crore equity shares through sale to shareholders, including promoters.

Gandhar Oil Refinery India, a white oil producer, will launch its IPO for subscription on November 22. This would be the third bid to open next week after the Indian Renewable Energy Development Agency and Tata Technologies.

The price band for the issue, which closes on November 24, is expected to be announced by Friday. The anchor book will open for one day on November 21st.

The IPO comprises a fresh issue component of Rs 302 crore and an offer for sale (OFS) of 1.17 crore shares through sale to shareholders, including promoters.

Promoters Ramesh Babulal Parekh, Kailash Parekh and Gulab Parekh will sell 22.5 lakh shares of OFS each. Additionally, Green Desert Real Estate Brokers, Denver Bldg Mat & Décor TR LLC and Fleet Line Shipping Services LLC will exit the company by selling the entire stake of 30 lakh shares, 10 lakh shares and 10 lakh shares in OFS, respectively .

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The Maharashtra-based company, which serves the consumer and healthcare sectors, will repay its subsidiary Texol’s debt worth Rs 22.71 crore. In addition, Rs 27.73 crore will be spent on purchase of equipment and civil works required for expansion of automobile oil capacity at Silvassa plant and Rs 185 crore will be used for working capital requirements. The remaining amount will be used for general corporate purposes.

Gandhar Oil manufactures several products under the Divyol brand primarily in the areas of personal care, health and performance oils (PHPO), lubricants and process and insulating oils (PIO). The company has long-term relationships with several domestic and global customers including Procter & Gamble, Unilever, Marico, Dabur, Encube, Patanjali Ayurved, Bajaj Consumer Care, Emami and Amrutanjan Healthcare.

Also read: Tata Technologies sets IPO price range at Rs 475-500 per share

Promoters – The Parekh family owns an 87.5 per cent stake in India’s largest white oils producer, which posted a revenue growth of 40.6 per cent in FY21-23. The rest of the shares are held by public shareholders including IDFC Asset Management Company.

PHPO is the largest division contributing 55 percent of sales in FY23, followed by lubricants with a sales share of 25 percent. And the rest of the revenue contribution comes from PIO and sales partners.

ICICI Securities and Nuvama Wealth Management are the merchant banks for this issue.

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