Ahmedabad, Gandhar Oil Refinery (India) Ltd., a growth leader and leading producer of white oil by revenue, focused on the consumer and healthcare end products industry, has filed its draft red herring prospectus (“Sebi”) with market regulator Securities and Exchange Board of India (“SEBI”). DRHP”) has entered.
The company’s IPO (Initial Public Offering) involves a fresh issue of ₹357 crore and an offer for sale of 12,036,380 equity shares by the selling shareholders.
The offer for sale consists of 6.75 million equity shares by the promoter seller shareholders (Ramesh Babulal Parekh, Kailash Parekh and Gulab Parekh) and existing investors (including Green Desert Real Estate Brokers, Denver Building Material & Decor TR LLC, Fleet Line Shipping Services LLC, IDFC First Bank Ltd. and Mr. Amitabh Mishra are involved) through 5.27 million equity shares.
The Company proposes to use the net proceeds from the Fresh Issue for the following purposes: a) Investing in Taxol by way of loan to finance the repayment/advance payment of the loan taken by Taxol from Bank of Baroda; (b) (1) increase the automotive oil capacity at our Silvassa plant;
(2) increasing the capacity of the petroleum jelly and allied cosmetic products division at our Taloja plant; and (3) making capital expenditures for the purchase of civil work and equipment necessary to increase the capacity of white oils by installing blending tanks at our Taloja plant; (c) funding our company’s capital needs; and (d) for ordinary corporate operations.
Gandhar Oil Refinery (India) Limited was India’s largest producer of white oils in terms of revenue in FY 2021-22, including domestic and foreign sales revenue, and is among the top five global companies in terms of market share in the company’s calendar year 2021 (Source: CRISIL Report). .
As of June 30, 2022, its product portfolio includes more than 350 products, primarily used in personal care, healthcare and performance oils (“PHPOs”), lubricants and process and insulating oils (“PIOs”) under the “Divyol” brand. The products are used in the consumer, healthcare, automotive, industrial, power and tire and rubber sectors to make end or end-use products.
In FY 2021-22, products were sold in more than 100 countries worldwide and supplied products to 3,529 customers, including Pocter & Gamble (“P&G”), Unilever, Marico, Dabur, Ancube, Patanjali Ayurveda, Bajaj Consumer Care, Emami and Amritanjan Healthcare. Leading Indian and global companies like
The company has three manufacturing facilities, with a combined annual production capacity of 497,403 kiloliters as on June 30, 2022 (increased to 522,403 kiloliters in October, 2022). The company’s manufacturing facilities are in Taloja, Maharashtra, Silvassa, Dadar and Nagar Haveli, Daman and Diu Union Territories and Sharjah, United Arab Emirates.
The book running lead managers of the issue are – Edelweiss Financial Services Limited and ICICI Securities Limited.
