Gandhar Oil Refinery India Limited IPO

Gandhar Oil Refinery India Limited IPO

Gandhar Oil Refinery India Limited is coming up with an IPO worth INR 500 crores with a fresh issue of INR 357 crore and an offer for sale of 1.2 crore shares. The company plans to invest in its subsidiary, Texol, to incur capital expenses to expand the capacity of the company’s plant and to fund the working capital requirement. 

Gandhar Oil Refinery IPO – Important Details

Gandhar Oil Refinery Limited IPO DateNovember 22, 2023 to November 24, 2023
Gandhar Oil Refinery Limited IPO Listing DateDecember 4, 2023
Gandhar Oil Refinery Limited IPO PriceINR 160 to 169 per share
Gandhar Oil Refinery Limited IPO Lot Size88 Shares
Gandhar Oil Refinery Limited IPO Total Issue SizeINR 500 crores
Gandhar Oil Refinery Limited IPO Basis of Allotment
November 29, 2023
Gandhar Oil Refinery Limited IPO Initiation of Refunds
November 30, 2023
Gandhar Oil Refinery Limited IPO Credit of Shares to Demat
December 1, 2023
Gandhar Oil Refinery Limited IPO Issue TypeBook Built Issue IPO
Gandhar Oil Refinery Limited IPO Listing AtBSE, NSE

Gandhar Oil Refinery India Limited IPO – Company Profile

Gandhar Oil Limited is a prominent manufacturer of white oils that caters to the consumer and healthcare end industries. As of June 30, 2022, the company offers an extensive range of over 350 products that primarily fall under three categories – personal care, healthcare and performance oils (PHPO), lubricants, and process and insulating oils (PIO) – under the brand name “Divyol.”

The company’s products serve as crucial ingredients for various end products in sectors such as consumer goods, healthcare, automotive, industrial, power, tire, and rubber, and are used by leading Indian and global companies.

The company has a diversified customer base that comprises 3,529 customers. The customers include P&G, Unilever, Marico, Emami, Bajaj Consumer Care, Encube, Patanjali Ayurved, Dabur, Amrutanjan Healthcare, Supreme Petrochem, etc in the PHPO division; Gulf Oil, Adani Ports and Special Economic Zone, etc in the lubricants division; and Toshiba Transmission and Distribution Systems (India) and other leading manufacturers of transformers and power distribution and transmission companies in the PIO division.

Gandhar Oil Refinery India Limited IPO – Fundamental Analysis

Gandhar Oil Refinery India Limited IPO has showcased positive growth trends in revenue, profitability, return on equity, and earnings per share. The company’s low debt, good liquidity position, and efficient asset management reflect a healthy financial status.

Revenue: 

The company experienced a substantial increase in revenue from ₹25,036.26 million in March 2020 to ₹35,433.18 million in March 2022, indicating significant growth over the years.

Profitability: 

The Profit and Loss After Tax has notably increased from ₹98.59 million in March 2020 to ₹1,634.33 million in March 2022, displaying a positive trend in profitability.

Return on Net Worth (RoNW): 

RoNW has shown a significant surge from 2.87% in March 2020 to 32.53% in March 2022, indicating improved efficiency in utilizing equity to generate profits.

Earnings Per Share (EPS): 

Diluted EPS has notably increased from ₹1.23 in March 2020 to ₹18.40 in March 2022, indicating higher earnings attributable to each outstanding share.

Debt and Liquidity: 

Debt to Equity Ratio has fluctuated but remains relatively low, indicating a moderate level of debt compared to equity. The Current Ratio indicates the company’s ability to cover short-term liabilities, showing a good liquidity position.

Asset Management: 

Total Assets have shown steady growth, indicating the expansion of the company’s asset base over time.

Inventory Turnover: 

The Inventory Turnover Ratio has increased from 9.83 times in March 2020 to 11.66 times in March 2022, indicating efficient management of inventory.

Gandhar Oil Refinery IPO Financial Information

ParticularAs at 31 March 2020As at 31 March 2021As at 31 March 2022
Revenue(₹in millions)25,036.2622,207.9635,433.18
Equity(₹ in millions)3,459.924,444.875,602.16
Expenses (₹in millions)25,027.9421,294.0733,442.30
Profit and Loss After Tax (₹ in millions)98.591,001.321,634.33
RoNW (%)2.87%25.33%32.53%
Diluted EPS only (₹)1.2312.5218.40
NAV per Equity Share (₹)43.2555.5670.03
Total Assets (in millions)10,079.5111,005.9513,178.26
Total Liabilities (in millions)  6,619.596,561.097,576.10
Debt to Equity Ratio0.38 times0.18 times0.28 times
Current Ratio1.41 times1.55 times1.53 times
Inventory Turnover Ratio9.83 times9.04 times11.66 times

Gandhar Oil Refinery India Ltd IPO Peer Comparison

Gandhar Oil Refinery India Ltd demonstrates strong revenue growth (₹35,433.18M) and RoNW (32.53%) with EPS of ₹18.40. Compared to peers, it boasts competitive performance in revenue and RoNW, positioning favorably in the sector.

CompanyRevenue (₹ in million)Face Value per Equity Share (₹)P/EEPS (Basic) (₹)EPS (Diluted) (₹)RoNW (%)NAV per Equity Share (Basic) (₹)
Gandhar Oil Refinery (India) Limited35,433.182NA18.4018.4032.53%70.03
Savit Oil Technologies Ltd29,382.1528.2537.6237.6222.45%182.04
Apar Industries Ltd93,199.901025.7167.0967.0916.48%448.21
Panama Petrochem Ltd21,323.5429.4938.0838.0834.66%126.99
Galaxy Surfactants Ltd36,857.101035.3774.1274.1218.28%444.04
Privi Speciality Chemicals Ltd14,037.201047.2124.9324.9312.63%209.82
Rossari Biotech Ltd14,829.74242.0017.8117.7016.10%146.04
Fairchem Organics Ltd6,431.841025.3552.1552.1533.38%178.29

Gandhar Oil Refinery India Ltd IPO Objective

Gandhar Oil Refinery India Limited plans a subsidiary investment of INR 30.9 crores in Texol via a loan, aims to expand Silvassa and Taloja plants, utilizing INR 59.17 crores, and allocate INR 178.23 crores for working capital needs.

  1. Investment in subsidiary: The company plans to invest INR 30.9 crores 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.
  1. Expansion of existing Plant: The company plans to purchase equipment and civil work required for (i) expansion in capacity of automotive oil at their Silvassa Plant; (ii) expansion in capacity of petroleum jelly and accompanying cosmetic product division at their Taloja Plant; and (iii) expansion in capacity of white oils by installing blending tanks at their Taloja Plant. For the said purpose, the company plans to utilize INR 59.17 crores from the net issue.
  2. To fund the working capital requirements: The company requires additional working capital for the working capital gap. The company proposes to utilize INR 178.23 crores from the net proceeds towards working capital requirements for meeting future business requirements.

Gandhar Oil Refinery IPO Risks And Challenges

Gandhar Oil Refinery IPO faces risks from heavy reliance on PHPO division (53% revenue), volatile raw material costs, supply chain uncertainties, operational hazards, and significant reliance (78%) on imported base oil suppliers from South Korea and GCC.

  1. In 2022, almost 53% of the revenue of the group company came from the personal care, health care, and performance oil business (PHPO) division. An inability to manage sales by the business division effectively leads to any revenue reduction from this division, which could adversely affect the business, financial condition and results of operations.
  1. Volatile raw material prices, supply chain uncertainties, and contractual mismatches pose risks, potentially impacting production, margins, and overall business sustainability.
  1. Operational risks like machinery breakdowns, power shortages, labor disruptions, and capacity underutilization may impact production, compliance, and financial stability.
  1. The company depends on South Korea and the Gulf Cooperation Council region (“GCC Region”) for most of its base oil purchases. For the year 2022, almost 78% of the company’s raw material requirement was imported. Delays, interruptions, or reductions in the supply of raw materials may affect the business adversely. 

Gandhar Oil Refinery India Ltd IPO – Industry & Market Potential

The Indian economy has fully recovered to pre-pandemic levels, boasting an 8.7% real GDP growth for fiscal 2022. Government initiatives, including tax reductions and the Production-Linked Incentive (PLI) scheme, aim to boost manufacturing, attract foreign investment, and address inflation. Supply chain diversification, driven by global DE risks from China, presents opportunities for Indian manufacturers. India’s competitive advantages and favorable economic environment position it for sustained growth across various industries.

The global white oil market, led by key players like Calumet, ExxonMobil, and Gandhar Oil, reflects oligopolistic dynamics. Trends include consolidation, quality norm adherence, and index-based pricing. Growth is driven by end-user industry innovation, health consciousness, and expanding sectors like power and automotive.

Gandhar Oil Refinery IPO – Type of Offer

Gandhar Oil Refinery plans to raise INR 357 crores through a fresh share issue for subsidiary investment, plant expansion, and working capital. Additionally, existing promoters aim to sell 1.2 crore shares.

  • Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 357 crores. The company intends to utilize the proceeds from the fresh issue to invest in its subsidiary, expand the existing plant of the company, and meet the future working capital requirements.
  • Offer for sale: Gandhar Oil Refinery is offering to sell 1.2 crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
Name of the promoter selling shareholderMaximum number of offered shares for sale
[M1] Mr. Ramesh Babulal Parekh2,250,000
Mr. Kailash Parekh2,250,000
Ms. Gulab Parekh2,250,000

Gandhar Oil Refinery India Limited IPO Offer Size

Gandhar Oil Refinery India Limited is launching an IPO valued at INR 500 crores, involving a fresh issue of INR 357 crores and the sale of 1.2 crore shares. The funds will be allocated for subsidiary investment, plant capacity expansion, and working capital needs.

Gandhar Oil Refinery India Limited IPO Allotment Structure

Gandhar Oil Refinery India Limited’s IPO allocation designates 50% to Qualified Institutional Buyers (banks, mutual funds, insurance), 15% to Non-Institutional Investors (corporates, high-value individuals), and 35% to Retail Individual Investors (individuals with smaller investments), which complies with SEBI regulations. Also, a portion of the issue is reserved for eligible employees. 

  • Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
  • Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
  • Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
  • Eligible Employees: A portion of the offer is reserved for the employees. 

How to apply for an Gandhar Oil Refinery India Limited IPO?

To apply for the Gandhar Oil Refinery India Limited IPO through Alice Blue, you would typically follow these steps:

1.  Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.

2.  Check for IPO Details: Once your account is active, you can check for the Gandhar Oil Refinery India Limited IPO details in the IPO section of the Alice Blue platform.

3.  Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.

4.  Submit the Application: Confirm all your details and submit your application.

 You can apply for the Gandhar Oil Refinery Limited’s IPO at Alice Blue[M1]  in just a few clicks!

Check Allotment Status: Post the allotment process; you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

How to Check Gandhar Oil Refinery India Limited IPO Allotment Status on Alice Blue?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1.  Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.

2.  Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.

3.  Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.

4.  Select the Gandhar Oil Refinery Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Gandhar Oil Refinery Limited IPO.

5.  Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.

Apart from Alice Blue, there are other ways to check the allotment status of the Gandhar Oil Refinery Limited IPO:

Registrar’s Website: Visit the website of Link In time India Private Limited, the registrar of the Gandhar Oil Refinery Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.

 Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.

Gandhar Oil Refinery India Limited IPO Offer Registrar

The registrar for the Gandhar Oil Refinery Limited IPO is Link In time India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar:

Link In time India Private Limited

C-101, 1stFloor, 247 Park

L.B.S. Marg, Vikhroli West

Mumbai 400 083

Maharashtra, India

Tel: +91 810 811 4949

E-mail: [email protected]

Website: www.linkintime.co.in

Gandhar Oil Refinery India Limited IPO FAQs

1. What is the allotment date of the Gandhar Oil Refinery India Limited IPO?

The allotment date will be finalized on November 29, 2023, and the allotted shares will be credited to the customer’s demat account by December 1, 2023.

2. What is the price band of the Gandhar Oil Refinery India Limited IPO?

The price band of the shares issued by the company has not yet been announced.

3. What is the size of the Gandhar Oil Refinery India Limited IPO?

Gandhar Oil Refinery India Limited is launching an IPO valued at INR 500 crores, involving a fresh issue of INR 357 crores and the sale of 1.2 crore shares. The funds will be allocated for subsidiary investment, plant capacity expansion, and working capital needs.

4. What is the listing date of the Gandhar Oil Refinery India Limited IPO?

The listing date of the issue is December 4, 2023.

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