Gandhar Oil Refinery (India) Ltd is gearing up to launch its initial public offering on November 22, with the three-day IPO set to conclude on November 24. The anchor book of the offer will open for a day on November 21, as outlined in the Red Herring Prospectus (RHP).
This will mark the third maiden public issue opening next week, following Indian Renewable Energy Development Agency and Tata Technologies. The IPO consists of a fresh issue of equity shares worth Rs 302 crore and an Offer for Sale (OFS) of 1.17 crore by promoters and existing shareholders.
Market sources expect the fundraising through the OFS component to reach Rs 500 crore. The OFS includes shares from promoters Ramesh Babulal Parekh, Kailash Parekh, and Gulab Parekh, as well as other shareholders such as Fleet Line Shipping Services LLC, Denver Bldg Mat & Decor TR LLC, and Green Desert Real Estate Brokers.
The proceeds from the fresh issue component will be allocated towards paying off debt, purchasing equipment, and conducting civil work for expanding the capacity of automotive oil at the Silvassa plant. Funds will also support the expansion of capacity for petroleum jelly and the accompanying cosmetic product division at the company’s Taloja plant, as well as expanding capacity for white oils by installing blending tanks at the plant and funding working capital requirements.
Gandhar Oil Refinery is a leading manufacturer of white oils, with a focus on the consumer and healthcare end industries. As of June 30, 2022, the company’s product suite included over 350 products primarily across the personal care, healthcare, performance oils, lubricants, and process and insulating oils divisions under the Divyol brand.
Nuvama Wealth Management (formerly known as Edelweiss Securities) and ICICI Securities are the book-running lead managers advising the company on the IPO. The initial share sale of state-owned Indian Renewable Energy Development Agency is scheduled to open on November 21, followed by Tata Technologies on the following day.
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