Gandhar Oil Refinery files DRHP to raise funds via IPO

Gandhar Oil Refinery, a leading manufacturer of white oils, has filed its draft red herring prospectus (DRHP) with the capital markets regulator Sebi to launch its initial public offering (IPO).

The company’s IPO comprises a fresh issue of up to Rs 357 crore and an offer for sale (OFS) 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, and up to 5.27 million equity shares by existing investors.

The net proceeds from fresh issuance worth Rs 357 crore will be used towards financing the repayment/pre-payment of a loan facility, purchase of equipment and civil work, expansion in capacity of automotive oil, petroleum jelly, white oils by installing blending tanks, funding working capital requirements and general corporate purposes.

Gandhar Oil Refinery 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.

As of June 30, 2022, the product suite of the company comprises 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 for the manufacture of end products in the consumer, healthcare, automotive, industrial, power and tyre and rubber sectors.

The products of Gandhar Oil Refinery are sold in over 100 countries across the globe, catering to 3,529 customers in 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.