Gandhar Oil Refinery (India) limited, a leading manufacturer of white oils by revenue with a growing focus on the consumer and healthcare end-industries has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”).
The Company’s initial public offering comprises a fresh issue of up to ₹357 crores and an offer for sale of up to 12,036,380 equity shares by selling shareholders.
The offer for sale comprises up to 6.75 million equity shares by Promoter Selling Shareholders (Ramesh Babulal Parekh, Kailash Parekh and Gulab Parekh), and up to 5.27 million equity shares by existing investors including (Green Desert Real Estate Brokers, Denver Bldg Mat & Décor TR LLC, Fleet Line Shipping Services LLC, IDFC First Bank Limited and Mr. Amitabh Mishra.)
The company proposes to utilize the Net Proceeds from the Fresh Issue towards funding the a) 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; b) Capital expenditure through purchase of equipment and civil work required for (i) expansion in capacity of automotive oil at our Silvassa Plant; (ii) expansion in capacity of petroleum jelly and accompanying cosmetic product division at our Taloja Plant; and (iii) expansion in capacity of white oils by installing blending tanks at our Taloja Plant; c) Funding working capital requirements of our Company; and d) general corporate purposes.
Gandhar Oil Refinery (India) Limited is India’s largest manufacturer of white oils by revenue in FY22, including domestic and overseas sales and is one of the top five players globally in terms of market share in CY21 (Source: Crisil Report). As of June 30, 2022, the product suite comprises of over 350 products primarily across the personal care, healthcare and performance oils (“PHPO”), lubricants and process and insulating oils (“PIO”) divisions under the “Divyol” brand. The products are used as for the manufacture of end products in the consumer, healthcare, automotive, industrial, power and tyre and rubber sectors.
The products are sold in over 100 countries across the globe, catering to 3,529 customers in the FY22, including leading Indian and global companies such as Procter & Gamble (“P&G”), Unilever, Marico, Dabur, Encube, Patanjali Ayurved, Bajaj Consumer Care, Emami and Amrutanjan Healthcare. The company operates three manufacturing facilities with a combined annual production capacity of 497,403 kL as of June 30, 2022 (enhanced to 522,403 KL in October 2022), with plants located in Taloja, Maharashtra, the Union Territory of Silvassa, Dadra and Nagar Haveli, Daman and Diu and Sharjah, United Arab Emirates.
Edelweiss Financial Services Limited and ICICI Securities Limited are the Book Running Lead Managers to the issue.