Gandhar Oil Refinery to launch IPO on November 22
New Delhi, India – Gandhar Oil Refinery (India) Ltd has announced its plans to open its Initial Public Offering (IPO) on November 22, with the three-day offering set to conclude on November 24. The anchor book of the offer will be open for a day on November 21, according to the Red Herring Prospectus (RHP).
The IPO will consist of a fresh issue of equity shares worth Rs 302 crore and an Offer for Sale (OFS) of 1.17 crore promoters and existing shareholders. Market sources have suggested that fundraising through the OFS component is expected to reach Rs 500 crore.
Promoters Ramesh Babulal Parekh, Kailash Parekh, and Gulab Parekh, as well as other shareholders Fleet Line Shipping Services LLC, Denver Bldg Mat & Decor TR LLC, and Green Desert Real Estate Brokers, will be offering shares in the OFS.
The proceeds from the fresh issue component will be used for debt repayment and for the purchase of equipment and civil work required for expansion in the capacity of automotive oil at the Silvassa plant. Additionally, funds will be utilized for capacity expansion of petroleum jelly and accompanying cosmetic product division at the company’s Taloja plant, and for expansion in capacity of white oils installing blending tanks at the plant, as well as funding working capital requirements.
Gandhar Oil Refinery is a leading manufacturer of white oils with a growing focus on the consumer and healthcare end industries. As of June 30, 2022, the company’s product suite comprised over 350 products primarily across the personal care, healthcare, and performance oils, lubricants, and process and insulating oils divisions under the Divyol brand.
Nuvama Wealth Management (formerly known as Edelweiss Securities) and ICICI Securities are the book-running lead managers that will advise the company on the IPO. This will be the third maiden public issue opening next week, after Indian Renewable Energy Development Agency and Tata Technologies, with the initial share sale of state-owned Indian Renewable Energy Development Agency scheduled to open on November 21, and that of Tata Technologies on the following day.