Gandhar Oil Refinery Ltd

,About the Company:

Gandhar Oil Refinery Ltd is a leading manufacturer of white oils by revenue with a growing focus on the consumer and healthcare end-industries.

Company’s product suite comprised over 440 products primarily across the personal care, healthcare and performance oils (“PHPO”), lubricants and process and insulating oils (“PIO”) divisions under the “Divyol” brand.

Company’s products are used as ingredients by leading Indian and global companies for the manufacture of end products for the consumer, healthcare, automotive, industrial, power and tyre and rubber sectors.

The white oil market is the fastest growing segment in the specialty oils sector and 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.

As of June 30, 2023, our products were sold in over 100 countries across the globe. Company catered to over 3,500 customers in the Financial Year 2023.

Company is a leading Indian and global companies such as Procter & Gamble (“P&G”), Unilever, Marico, Dabur, Encube, Patanjali Ayurved, Bajaj Consumer Care, Emami and Amrutanjan Healthcare, supported by a global supplier base and manufacturing operations in India and United Arab Emirates.

The product categories and primary end-industries for our three main business divisions are as follows:

Revenue from Various Segments:

Company’s Customers in PHPO division are as follows:

P&G.
Unilever.
Marico.
Emami.
Bajaj Consumer Care.
Patanjali Ayurved.
Dabur,.
Amrutanjan Healthcare.

Company’s Customers in lubricants division are as follows:

Gulf Oil.
Adani Ports and Special Economic Zone.

Company’s Customers in PIO division are as follows:

Toshiba Transmission and Distribution Systems (India) and other leading manufacturers of transformers and power distribution and transmission companies

Geographical Presence:

As of June 30, 2023, Company’s overseas operations catered to over 100 countries globally. Company’s overseas sales primarily comprise revenue from overseas sales of our Company and revenue earned by Subsidiary, Texol, in Sharjah, United Arab Emirates.

Company’s Manufacturing facilities:

Company currently operate three manufacturing facilities with a combined annual production capacity of 522,403 kL as of June 30, 2023.

Company’s plants located in Taloja, Maharashtra, Silvassa, the Union Territory of Dadra and Nagar Haveli and Daman and Diu and Sharjah, United Arab Emirates to cater to domestic and overseas demand for the products.

Expanding the Manufacturing capacity:

Company is in the process of enhancing the production capacity of our Taloja Plant by an aggregate of 100,000 kL, out of which, we commissioned an incremental capacity of 25,000 kL in October 2022. This enhancement of capacity is proposed to be funded out of our internal accruals and through external borrowings obtained by our Company.

Company expect to complete the enhancement to the production capacity during the Financial Year 2024.

In addition, company separately intends to utilize Rs.27.7 cr out of the Net Proceeds towards enhancing our manufacturing capabilities and expect to add an aggregate of 18,840 kL of annual production capacity at our Silvassa Plant for expansion in capacity of automotive oil.

Management Team:

Mr. Ramesh Babulal Parekh (Designation: Chairperson and Managing Director)
Mr. Samir Ramesh Parekh (Designation: Vice Chairperson and Joint Managing Director)
Mr. Aslesh Ramesh Parekh (Designation: Joint Managing Director)

Objectives of the Issue:

Offer for Sale: (Rs. 198.6 cr)

Company will not receive any proceeds from the Offer for Sale and the proceeds received from the Offer for Sale will not form part of the Net Proceeds.

Fresh Issue: (Rs.302 cr)

Investment in Texol by way of a loan for financing the repayment/pre-payment of a loan facility availed by Texol from the Bank of Baroda.
Capital expenditure through purchase of equipment and civil work required for expansion in capacity of automotive oil at our Silvassa Plant.
Funding working capital requirements of the Company.
General corporate purposes.

Fund Utilization:

Particulars	Amount (Rs. in Crores)
Investment into Texol by way of a loan for financing the repayment/pre-payment of a loan facility availed by Texol from the Bank of Baroda	22.7 cr
Capital expenditure through purchase of equipment and civil work required for expansion in capacity of automotive oil at our Silvassa Plant	27.7 cr
Funding working capital requirements of our Company	185.0 cr

Positives for the Company:

Leading market share of the Indian white oils market with significant overseas sales, focused on the consumer and healthcare end-industries.

Company was India’s largest manufacturer of white oils by revenue in Financial Year 2023, including domestic and overseas sales and was one of the top five players globally in terms of market share in the calendar year 2022.
Company’s products form a major component by volume for various consumer and healthcare end-industry products such as cosmetics, skin care products, ointments, over-the-counter and other medicines, as well as lubricants, processing oils and insulating oils.

Extensive and diversified customer base and a supplier base comprised of leading oil companies with competitive pricing terms.

Company catered to an extensive customer base of 3,558 Indian and global companies during the Financial Year 2023.
Company’s customers in the PHPO division include P&G, Unilever, Marico, Emami, Bajaj Consumer Care, Encube, Patanjali Ayurved, Dabur, Amrutanjan Healthcare, Supreme Petrochem and other leading Indian manufacturers of pharmaceutical products.

Strategically located manufacturing facilities and in-house R&D capabilities.

Company currently operate three manufacturing facilities, with two plants located in Western India and one plant located in Sharjah, United Arab Emirates, spread across 1,28,454 square meters to cater to our Indian and global operations.
As of June 30, 2023, the combined annual production capacity of our manufacturing facilities was approximately 522,403 kL.

Continue to increase overseas sales by strategically expanding product offerings.

Company is working towards increasing penetration in existing geographies and potential entry into new geographies based on current customer relationships to support the growth globally.

Financials of the Company:

(in Crores)	FY 21	FY 22	FY 23	Upto 30th June 23
Revenue	2069.5	3397.9	4101.7	1071.5
Net Profit	161.1	184.3	213.18	54.28

IPO Details:

Details	Info
Issue Opens on	22nd November 2023
Issue Closes on	24th November 2023
Issue Price	Rs.160 – 169
Face Value	Rs.2
Retail Category Allocation	35%
Minimum Lot	88 Shares
Minimum Investment	Rs.14,872
Issue Constitutes	30.27%
Issue Size	Rs. 500.6 cr ($60 million)
Market Cap	Rs.1654 cr ($200 billion)
Listing at	NSE & BSE
Equity Shares Offered (Fresh)	1,78,69,822
Equity Shares Offered (OFS)	1,17,56,910
Total Equity Shares Offered (Fresh + OFS)	2,96,26,732
Equity Shares Prior to the Issue	8,00,00,000
Equity Shares after the Issue	9,78,69,822

Also Read : List of Upcoming IPO’s in India.

Important Dates:

Finalization of Basis of Allotment	on or Before 1st December 2023
Initiation of Refunds	on or Before 4th December 2023
Credit of Equity Shares:	on or Before 5th December 2023
Listing Date:	on or Before 5th December 2023

IPO Valuation Parameters:

Earnings Per Share (EPS)	Price To Earnings ratio (PE)	Return on Net Worth (RoNW)	Net Asset Value (NAV)
23.77	7.10	32.28%	95.03

Company Contact Info:
Gandhar Oil Refinery Ltd 18th floor, DLH Park, S.V. Road Goregaon (W), Mumbai 400 062 Maharashtra, India. Telephone: +91 22 4063 5600 E-mail: investor@gandharoil.com Website: www.gandharoil.com

IPO Registrar Info:
Link Intime India Private Limited C-101, 1st Floor, 247 Park L.B.S. Marg, Vikhroli West Mumbai 400 083 Maharashtra, India Tel: +91 810 811 4949 E-mail: gandharoil.ipo@linkintime.co.in Website: www.linkintime.co.in