The company submitted its draft red herring prospectus in December 2022 and received the approval from market regulator Securities & Exchange Board of India (SEBI) in June this year.
Gandhar Oil Refinery India has a leading market share in the Indian white oil market with a significant overseas presence. Gandhar Oil Refinery India IPO is a book built issue of ₹500.69 crores.
Here are 10 key things to know from Gandhar Oil Refinery India IPO RHP:
About Gandhar Oil Refinery India
Gandhar Oil Refinery India is a producer of white oils that serve the consumer and healthcare end industries. The company offers a wide range of more than 350 products mainly falling under three categories – personal care, treatment and performance oils (PHPO), lubricants, and process and insulation oils (PIO) – under the brand name “Divyol”.
The company served 100 countries across the globe, as of June 2022. It served more than 3,500 clients including companies such as Procter & Gamble (P&G), Unilever, Marico, Dabur, Encube, Patanjali Ayurved, Bajaj Consumer Care, Emami and Amrutanjan Healthcare. .
Read here: Gandhar Oil IPO opens on November 22, price band set at ₹160-169 per share
Gandhar Oil Refinery India IPO Details
Gandhar Oil IPO opens for subscription on Wednesday, November 22, and closes on Friday, November 24. The IPO consists of a fresh issue of 1.79 crore shares coupled with ₹302 crore and an offer for sale (OFS) of 1.18 crore shares aggregating to ₹198.69 crores.
Gandhar Oil IPO price band was fixed at ₹160 to ₹169 per share. The IPO lot size is 88 shares and the minimum investment amount required from retail investors is ₹14,872.
ICICI Securities and Nuvama Wealth Management are the book-running lead managers of the Gandhar Oil Refinery India IPO, while Link Intime India Private Ltd is the IPO registrar.
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Selling stockholders
In the OFS of Gandhar Oil IPO, promoter-selling shareholders include Kailash Parekh and Gulab Parekh. Other selling shareholders include Green Desert Real Estate, Fleet Line Shipping and Denver Bldg Mat & Décor TR LLC, among others.
Gandhar Oil IPO Objectives
The company plans to use the IPO proceeds for capital expenditures in Silvassa plant, expansion in Taloja plant, investment in Texol through a loan to finance the repayment or prepayment of a loan facility used by Texol, financing of working capital requirements and general. corporate goals.
Competitors
In the RHP, the company mentioned Savita Oil Technologies, Apar Industries, Panama Petrochem, Galaxy Surfactants, Privi Specialty Chemicals, Rossari Biotech and Fairchem Organics as its listed peers.
industry
Gandhar Oil Refinery India operates in the specialty oil industry and the Indian specialty oil market is estimated to be USD 7.33 billion in 2023 and reach USD 9.30 billion by 2028, at a CAGR of 4.9%. In terms of volume, the market is estimated to be 5,578 kilotonnes (KT) in 2023 and to reach 7,098 KT by 2028, at a CAGR of 4.9%.
White oil, the fastest growing segment of the Indian specialty oil market, is estimated to be worth USD 0.473 billion in 2023 and reach USD 0.759 billion by 2028, at a CAGR of 9.9%. In terms of volume, it is expected to reach 1,236 KT by 2028 from 782 KT in 2023, at a CAGR of 9.6%.
Read also: Gandhar Oil Refinery India IPO opens: GMP, subscription status, issue details, 10 key things to know before subscribing
Administration
Ramesh Parekh is the Promoter, Chairman and Managing Director of Gandhar Oil Refinery India, while Samir Parekh is the Promoter, Vice Chairman and Joint Managing Director of the company.
Aslesh Parekh is the promoter and Joint Managing Director of the company.
The company’s chief financial officer is Indrajit Bhattacharyy.
Raj Kishore Singh, Amrita Nautiya and Deena Mehta are Independent Directors of the Company.
Finances
Gandhar Oil reported a net profit of ₹213.1 crore in FY23, increasing from ₹184.2 crore in FY22. The company’s net profit in the April-June quarter of FY24 was flat ₹54.2 crores.
The company’s revenue in FY23 increased to ₹4,079 crore from ₹3,389 crore in FY22 and reported a CAGR of 25.5% from FY21 to FY23. In Q1FY24, the revenue was ₹1,070.3 crores.
Read also: Gandhar Oil Refinery India IPO: 10 key risk factors you should know before investing
forces
Gandhar Oil has a leading market share in the Indian white oil market with a significant overseas presence. It has a well-diversified product portfolio with a wide customer base.
The company can take advantage of the business growth by identifying and forming strategic joint ventures. It continues to increase foreign sales by expanding product offerings, while its diversified business model could limit the business risk.
Weaknesses
However, a large part of the company’s raw material comes from the limited suppliers, while it does not have a long-term agreement with its customers.
Moreover, the company’s operating margin has declined in the past two years and the volatility of crude oil prices is expected to remain unsettling.
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Disclaimer: The opinions and recommendations made above are those of individual analysts or trading companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Updated: 22 Nov 2023, 11:30 IST