Gandhar Oil Refinery IPO

By revenue, Gandhar Oil Refinery limited is the top producer of white oils, with an increasing emphasis on the consumer and healthcare end-industries (Source: CRISIL Report). Gandhar Oil Refinery IPO will hit the stock market in April 2023.

About Gandhar Oil Refinery

As of June 30, 2022, the “Divyol” brand was used by Gandhar Oil Refinery to market around 350 goods, mostly in the personal care, healthcare, and performance oils, lubricants, and process and insulating oils segments.

Leading Indian and international businesses use Gandhar Oil Refinery limited’s products as raw materials to create finished goods for the consumer, healthcare, automotive, industrial, power, tyre, and rubber industries.

Gandhar Oil Refinery limited’s business will be India’s largest white oil manufacturer by revenue in the financial year 2022, including domestic and international sales, and one of the top five players globally in terms of market share in the calendar year 2021. The white oil market is the specialty oils industry’s fastest-growing segment (Source: CRISIL Report).

Growth

Between the Financial Years 2020 and 2022, their pro forma consolidated revenue from operations increased at a CAGR of 49.68%, which was the highest CAGR growth among selected specialty oil peers and the second highest CAGR growth among selected specialty chemical peers.

They have successfully navigated difficult selection procedures to win the business of a number of their clients, and they have been able to uphold high customer loyalty.

The quality of their products and capabilities are demonstrated by the relationships they have with their customers as well as by the quality and other certifications given to their manufacturing facilities. As per the CRISIL report, these long-term ties with consumers are one of the hurdles to entry in their business.

Clientle

Their goods were available in more than 100 nations as of June 30, 2022. With the help of their global supplier network and manufacturing facilities in India and the United Arab Emirates, they catered to over 3,500 customers in the Financial Year 2022, including renowned Indian and international businesses like Procter & Gamble, Unilever, Marico, Dabur, Encube, Patanjali Ayurved, Bajaj Consumer Care, Emami, and Amrutanjan Healthcare.

They feel that their long-standing connections with several top Indian and international companies reflect their qualification of these needs.

As a manufacturer of specialty oils, they are needed to comply with high standards and other specifications specified by customers. They have successfully passed difficult selection procedures to win the business of several of their clients.

Gandhar Oil Refinery IPO

Gandhar Oil Refinery Limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 357 Crore and 12,036,380 equity shares on 21 December 2022.

The offer includes a fresh issue of INR 357 Crore and there is offer for sale (OFS)  of 12,036,380 equity shares by the promoters mentioned in the DRHP. They are looking for any Pre-IPO placement of INR 70 Crore in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Jun-22	31-Mar-22	31-Mar-21	31-Mar-20
Total Assets	1,622.09	1,317.83	1,100.60	1,007.95
Total Revenue	885.59	3,568.80	2,242.38	2,516.69
Profit After Tax	65.02	163.43	100.13	9.86

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2020	1.23	1.23	3
Financial Year 2021	12.52	12.52	2
Financial Year 2022	18.40	18.40	1
Weighted Average	13.58	13.58
30 June 2022	7.26	7.26

Objects of the Issue

• Repayment/prepayment of debt.
• General corporate objectives and organic growth.

Basis of the offer

Gandhar Oil Refinery limited feel that the following business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the Offer Price:

• With a strong focus on the consumer and healthcare end markets, white oils from India hold the largest market share.
• A sizable and diverse consumer base, as well as a supply base made up of top oil corporations with fair pricing terms.
• Their manufacturing facilities with excellent locations and internal R&D resources.
• Scalable, adaptable, and resilient business model with responsible risk management framework.
• A history of stable financial performance.
• Competent and experienced management group.

Gandhar Oil Refinery Peer Comparison

S. No.	Face Value	Company Name	PE
1	2	Savita Oil Technologies Ltd	8.25
2	10	Apar Industries Ltd	25.71
3	2	Panama Petrochem Limited	9.49
4	10	Galaxy Surfactants Limited	35.37
5	10	Privi Speciality Chemicals Limited	47.21
6	2	Rossari Biotech Limited	42.00
7	10	Fairchem Organics Limited	25.35

1. All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2022, which can be found on the Stock Exchanges’ websites.
2. The P/E ratio is calculated by dividing the closing market price of equity shares on the BSE on December 19, 2022 by the diluted EPS derived from the peer group company’s annual report for the year ended March 31, 2022.

Gandhar Oil Refinery IPO Details

IPO Opening Date	April 2023
IPO Closing Date	April 2023
Issue Type	Book Building
Face Value	02 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	357 Crore & 12,036,380 equity shares
Fresh Issue	357 Crore
Offer for Sale	12,036,380 equity shares

Gandhar Oil Refinery IPO Date

Gandhar Oil Refinery Limited IPO opening date is April 2023, and the closing date is April 2023. The Gandhar Oil Refinery issue may list in April 2023.

IPO Opening Date	April 2023
IPO Closing Date	April 2023
Basis of Allotment Date	April 2023
Initiation of Refunds	April 2023
Credit of Shares to Demat Account	April 2023
IPO Listing Date	April 2023

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum 1 lot based on availability

Gandhar Oil Refinery IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Gandhar Oil Refinery IPO.

Gandhar Oil Refinery IPO GMP

Gandhar Oil Refinery Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
April 2023
April 2023
April 2023
April 2023
April 2023
April 2023
April 2023
April 2023
April 2023
April 2023
April 2023
April 2023

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Gandhar Oil Refinery Limited IPO Review

Gandhar Oil Refinery Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Gandhar Oil Refinery IPO is good or bad.

Gandhar Oil Refinery Limited IPO Risk

• They heavily rely on their personal care, health care, & performance oil business divisions, so downturns in the industries they serve, or a failure on their part to manage sales effectively, which results in a decrease in revenue from this division, could negatively impact their operations.
• Their business could be negatively impacted by delays, disruptions, or reductions in the supply of the raw materials used to make their products, as well as sudden changes in the cost of their raw materials.
• They are vulnerable to counterparty credit risk, & any payment delay or non-receipt could have a negative impact on their cash flow.
• Changes in exchange rates for the many currencies in which they conduct business could be detrimental to their operations.

Other Threats

1. Their total business and the demand for their products depend on the end markets in which they are utilized, thus any reduction in the demand for the final goods produced by their customers could have a negative effect on their business.
2. They do not have long-term contracts with their suppliers, but a sizable amount of their raw materials come from a small group of them.
3. Their business has been negatively impacted by the COVID-19 epidemic that is now occurring. Disputes have been filed against their company, a few of its subsidiaries, and a few of its promoters and directors.
4. Any unfavorable verdict in such processes could subject them to fines or penalties and have a negative impact on their business.

Gandhar Oil Refinery Limited IPO Brokerage views

Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Gandhar Oil Refinery IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Gandhar Oil Refinery Limited IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
April 2023	1
April 2023	2
April 2023	3

Gandhar Oil Refinery Limited Management

Gandhar Oil Refinery is managed by a skilled & knowledgeable management group with expertise in administration, marketing, and human resource management as well as knowledge of the specialty oils industry.

The Chairman of their Board and Managing Director, Mr. Ramesh Parekh, founded their Company. He has worked in the speciality oils sector for 30 years.

The operations of their Silvassa Plant are managed by Mr. Samir Parekh, a Joint Managing Director with over 19 years of experience in the specialty oils industry, and the operations of their Taloja Plant are managed by Mr. Aslesh Parekh, a Joint Managing Director with over 19 years of experience in the specialty oils industry. He is also in charge of their team for foreign business.

Gandhar Oil Refinery Limited‘ Principal Shareholders

• Mr. Ramesh Babulal Parekh
• Mr. Samir Ramesh Parekh
• Mr. Aslesh Ramesh Parekh

Principal Shareholders’s Holding

Pre Issue Share Holding	42.51%
Post Issue Share Holding

Gandhar Oil Refinery Limited Prospectus