The Gandhar Oil Refinery India IPO, valued at Rs 500.69 crores, is a book-built issue. It comprises a fresh issue of 1.79 crore shares, totaling Rs 302.00 crores, and an offer for sale of 1.18 crore shares, amounting to Rs 198.69 crores.

The IPO bidding for Gandhar Oil Refinery India commenced on November 22, 2023, concluding on November 24, 2023. Allotment results were confirmed on Tuesday, November 28, 2023. Subsequently, the company's shares were listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on November 30, 2023.

The IPO price range for Gandhar Oil Refinery India is ₹160 to ₹169 per share, with a minimum lot size of 88 shares. Retail investors need to invest a minimum of ₹14,872. For sNII, the minimum investment is 14 lots (1,232 shares) totaling ₹208,208, while for bNII, it is 68 lots (5,984 shares) amounting to ₹1,011,296.

ICICI Securities Limited and Nuvama Wealth Management Limited serve as the book running lead managers for the Gandhar Oil Refinery India IPO, with Link Intime India Private Ltd appointed as the registrar for the offering.

Objective of IPO.

The issue is a mix of both Offer for sale and Fresh issue:

Offer for sale: INR 198.69 Cr. (11756910 shares)

Fresh Issue: INR 302 Cr.

The use of fresh proceeds will be done in the following manner:

1. 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.
2. Capital expenditure through purchase of equipment and civil work required for expansion in capacity of automotive oil at our Silvassa Plant.
3. Funding working capital requirements of our Company.
4. General corporate purposes. 

Read more

About GANDHAR OIL REFIRNERY Limited

The company is a leading manufacturer of white oils by revenue and is one of the top five players globally in terms of market share in the CY22, with a growing focus on the consumer and healthcare end-industries.

Product:  440+ products

• Personal Care Healthcare and Performance Oils (“PHPO”): White oils, waxes and jellies
• Lubricants: Automotive oils and industrial oils
• Process and Insulating Oils (“PIO”): Transformer oils and rubber processing oils

These 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.

Brand Name: DIVYOL.

The company had catered over 3,500 customers across 100 countries across the globe in FY23 including companies such as Procter & Gamble (“P&G”), Unilever, Marico, Dabur, Encube, Patanjali Ayurved, Bajaj Consumer Care, Emami and Amrutanjan Healthcare, supported by global supplier base and three manufacturing units in India and United Arab Emirates.

Competition:

Automotive oil industry is characterized by the presence of public sector oil marketing companies (OMCs) such as Indian Oil, Hindustan Petroleum and Bharat Petroleum. Presence of key multinational companies include Castrol India, Shell, Total Energies and Valvoline while prominent Indian companies include Gulf Oil, Savita Oil Technologies, Apar Industries, Raj Petro Specialties.

Specialty oil peers include Savita Oil Technologies Limited and Panama Petrochem Limited. Pharmaceuticals and consumer products, Rossari Biotech, Privi Specialty, Fairchem Organics, and Galaxy Surfactants.

The global specialty oil market is characterized by a large product mix and a wide variety of applications across multiple end-user industries. Overall market growth is driven by increasing demand across multiple products that in turn is gaining from the positive outlook of end-user industries.

Global specialty oil to reach $154 billion by 2028. The global specialty oil market value, estimated at $129.90 billion in 2023, is expected to grow to $154.0 billion by 2028, at a CAGR of 3.5%. The specialty oil market is estimated to create an absolute incremental opportunity of ~$24 billion over the next five years driven by increasing consumption of specialty oils in different end-use industries such as consumer, pharmaceuticals, automotive, manufacturing, power generation, and others.

The global specialty oil market size, pegged at 90,681 kilo tonne (KT) at the end of 2023, is anticipated to grow at a five-year CAGR of 3.3% to 106,707 KT by 2028. The Indian white oil market is estimated to be 782 KT at the end of 2023. Market volume is expected to grow to 1,236 KT by 2028, at a CAGR of 9.6% during 2023-2028.

Risk Analysis.

1. The company depends significantly on its personal care, health care and performance oil business division and any downturns in the industries addressed by the business divisions could affect the business, financial condition and results of operations.
2. The company is subject to strict quality requirements, standards and inspections, and the success and acceptance of its products by its customers are largely dependent on its ability to meet such requirements and standards.
3. Delays, interruptions or reductions in the supply of raw materials to manufacture the company's products and abrupt fluctuations in raw material prices may affect the business and its operation.
4. The company's overall business and the demand for its products are dependent on the end industries in which they are used, and any decline in the demand for the end products could have an adverse impact.
5. The company does not have long-term agreements with its customers. If a significant number of its customers choose not to place purchase orders with the company regularly or choose to terminate contracts, the business, financial condition, and results of operations may be adversely affected.
6. The company sources most of its base oil (its key raw material) from South Korea and the Gulf Co-operation Council region. Any inability to obtain base oil from these countries in the absence of alternative sources may result in the delay or cancellation of orders for its products, adversely impact customer relationships, and have a material adverse impact on company business, financial condition, and results of operations.