Gandhar Oil Refinery (India), a well-diversified player in the speciality oils and lubricants sector, has filed its Draft Red Herring Prospectus (DRHP) with capital market regulator Securities and Exchange Board of India (SEBI) to raise fund via initial public offering (IPO). The company’s IPO comprises a fresh issue of up to ₹357 crores and an offer for sale of up to 12,036,380 equity shares by existing shareholders.
The offer for sale comprises up to 6.75 million equity shares by promoters, including Ramesh Babulal Parekh, Kailash Parekh, and Gulab Parekh. Besides, 5.27 million equity shares will be offloaded by existing investors, including Green Desert Real Estate Brokers, Denver Bldg Mat & Décor TR LLC, Fleet Line Shipping Services LLC, IDFC First Bank.
The Mumbai-headquartered firm intends to utilise the net proceeds from the fresh issue towards funding in Texol, an overseas joint venture of Gandhar Oil, and for financing the repayment/pre-payment of a loan facility availed by Texol from the Bank of Baroda. A part of the raised fund will be used to meet capital expenditure, working capital requirements, expansion in capacity at its Silvassa and Taloja plants, and general corporate purposes.
Gandhar Oil Refinery (India) Limited is India’s largest manufacturer of white oils by revenue in FY22, including domestic and overseas sales and is one of the top five players globally in terms of market share in CY21, as per Crisil report. As of June 30, 2022, the product suite comprises of over 350 products primarily across the personal care, healthcare and performance oils (PHPO), lubricants and process and insulating oils (PIO) divisions under the “Divyol” brand. The products are used for the manufacture of end products in the consumer, healthcare, automotive, industrial, power and tyre, and rubber sectors.
The products are sold in over 100 countries across the globe, catering to 3,529 customers in the FY22, including leading 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 with a combined annual production capacity of 497,403 kL as of June 30, 2022 (enhanced to 522,403 KL in October 2022), with plants located in Taloja, Maharashtra, the Union Territory of Silvassa, Dadra and Nagar Haveli, Daman and Diu and Sharjah, United Arab Emirates.
Edelweiss Financial Services Limited and ICICI Securities Limited are the Book Running Lead Managers to the issue.