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:
GANDHAR OIL REFIRNERY IPO Details |
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IPO Date | November 22, 2023 to November 24, 2023 | ||||||||||
Listing Date | November 30, 2023 | ||||||||||
Face Value | 2 | ||||||||||
Price | 160 - 169 | ||||||||||
Lot Size | 88 shares | ||||||||||
Total Issue Size | 500.69 | ||||||||||
Fresh Issue | 17,869,822 shares (aggregating up to ₹302.00 Cr) | ||||||||||
Offer for Sale | 11,756,910 shares of ₹2 (aggregating up to ₹198.69 Cr) | ||||||||||
Issue Type | Book Built Issue IPO | ||||||||||
Listing At | NSE, BSE | ||||||||||
Share holding pre issue | 80,000,000 | ||||||||||
Share holding post issue | 97,869,822 |
GANDHAR OIL REFIRNERY IPO Lot Size |
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Application | Lots | Shares | Amount | ||||||||
Retail (Min) | 1 | 88 | ₹14,872 | ||||||||
Retail (Max) | 13 | 1144 | ₹193,336 | ||||||||
S-HNI (Min) | 14 | 1,232 | ₹208,208 | ||||||||
S-HNI (Max) | 67 | 5,896 | ₹996,424 | ||||||||
B-HNI (Min) | 68 | 5,984 | ₹1,011,296 |
GANDHAR OIL REFIRNERY IPO Timeline (Tentative Schedule) |
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IPO Open Date | Wednesday, November 22, 2023 | ||||||||||
IPO Close Date | Friday, November 24, 2023 | ||||||||||
Basis of Allotment | Tuesday, November 28, 2023 | ||||||||||
Initiation of Refunds | Wednesday, November 29, 2023 | ||||||||||
Credit of Shares to Demat | Wednesday, November 29, 2023 | ||||||||||
Listing Date | Thursday, November 30, 2023 | ||||||||||
Cut-off time for UPI mandate confirmation | 5 PM on November 24, 2023 |
GANDHAR OIL REFIRNERY IPO Reservation |
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Investor Category | Shares Offered | Reservation % | |||||||||
Anchor Investor Shares Offered | 8,888,018 (30.00%) | N/A | |||||||||
QIB Shares Offered | 5,925,346 (20.00%) | N/A | |||||||||
NII (HNI) Shares Offered | 4,444,010 (15.00%) | ||||||||||
bNII > ₹10L | 2,962,673 (10.00%) | 2,404 | |||||||||
sNII < ₹10L | 1,481,337 (5.00%) | 1,202 | |||||||||
Retail Shares Offered | 10,369,356 (35.00%) | 117,833 | |||||||||
Total Shares Offered | 29,626,730 (100%) |
GANDHAR OIL REFIRNERY IPO Promoter Holding |
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Share Holding Pre Issue | 87.5% | ||||||||||
Share Holding Post Issue | 64.63% |
GANDHAR OIL REFIRNERY IPO Subscription Status |
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Investor Category | Shares Offered | Shares Bid For | No oF Times Subscribed |
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
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.
Period Ended | 30 Jun 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
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Reserve of Surplus | 763.99 | 719.19 | 529.07 | 355.68 |
Total Assets | 1,795.57 | 1,613.44 | 1,318.2 | 1,097.70 |
Total Borrowings | 335.6 | 169.53 | 158.16 | 176.78 |
Fixed Assets | 173.114 | 174.748 | 158.314 | 74.335 |
Cash | 144.51 | 108.241 | 182.789 | 121.455 |
Net Borrowing | 191.108 | 61.284 | -24.63 | -42.712 |
Revenue | 1,071.52 | 4,101.79 | 3,397.98 | 2,069.58 |
EBITDA | 84.058 | 316.619 | 245.966 | 138.766 |
PAT | 54.28 | 213.18 | 184.30 | 161.14 |
EPS | 5.6 | 23.77 | 18.42 | 12.54 |
Key Performance Indicator |
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KPI | Values | ||||||||||
EPS Pre IPO (Rs.) | 23.77 | ||||||||||
EPS Post IPO (Rs.) | - | ||||||||||
P/E Pre IPO | 7.10 | ||||||||||
P/E Post IPO | 6.16 | ||||||||||
ROE | 32.28% | ||||||||||
ROCE | 41.19% | ||||||||||
P/BV | 1.49 | ||||||||||
Debt/Equity | 0.22 | ||||||||||
RoNW | 32.28% |
GANDHAR OIL REFIRNERY Limited IPO Peer Comparison |
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Company Name | EPS | ROCE | ROE | P/E (x) | P/Bv | Debt/Equity | RoNW (%) | ||||
Savita Oil Technologies Ltd | 30.1 | 24.2% | 16.1% | 14.6 | 2 | 0 | 24.2 | ||||
Apar Industries Ltd | 215 | 51.1% | 32.3% | 34.0 | 11.5 | 0.17 | 51.1% | ||||
Panama Petrochem Ltd | 30.6 | 34.9% | 27.1% | 10.7 | 1.96 | 0 | 34.9% | ||||
Galaxy Surfactants Ltd | 88.7 | 23.6% | 22.1% | 25.8 | 3.98 | 0.12 | 23.6% | ||||
Privi Speciality Chemicals Ltd | 13.2 | 5.60% | 2.80% | 74 | 4.47 | 1.21 | 5.60% | ||||
Rossari Biotech Ltd | 22.7 | 18.4% | 12.4% | 29.9 | 3.86 | 0.13 | 18.4% | ||||
Fairchem Organics Ltd | 31.2 | 21.5% | 17.7% | 39.9 | 6.05 | 0.13 | 21.5% | ||||
GANDHAR OIL REFIRNERY Limited | 23.77 | 41.19% | 32.28% | 7.1 | 1.49 | 0.22 | 32.28% |
Gandhar Oil Refinery (India) Limited
18th floor, DLH Park,
S.V. Road
Goregaon (W), Mumbai 400 062
Phone: +91 22 4063 5600
Email: investor@gandharoil.com
Website: https://gandharoil.com/
Link Intime India Pvt. Ltd.
Address: C - 101, 1st Floor, 247 Park L.B.S. Marg, Vikhroli West,
Mumbai 400 083, Maharashtra, India
Phone: +91-22-4918 6270
Email: gandharoil.ipo@linkintime.co.in
Website: https://linkintime.co.in/initial_offer/public-issues.html
Gandhar Oil Refinery (India) Ltd. (GORL) is a prominent producer of white oils, focusing on consumer and healthcare sectors. With consistent revenue growth, GORL's recent financials show a positive trajectory, boasting a total income/net profit of Rs. 4101.79 cr./Rs. 213.18 cr. in FY23. Its Q1 FY24 net profit stands at Rs. 54.28 cr. GORL's average EPS over three fiscal years is Rs. 20.11, with an RoNW of 31.11%. Priced at a P/BV of 1.49, the IPO offers potential for medium to long-term gains, backed by its strong performance and diverse product portfolio under the "Divyol" brand. With Nuvama Wealth and ICICI Securities Ltd. overseeing the IPO, investors could find value in this opportunity.
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