Gandhar Oil Refinery (India) Limited, a revenue leader in white oils with a growing focus on the consumer and healthcare end-industries, has filed its Draught Red Herring Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI).
The company’s initial public offering consists of a fresh issue of up to Rs 357 crores and an offer by selling shareholders to sell up to 12,036,380 equity shares.
The offer for sale includes up to 6.75 million equity shares sold by Promoter Selling Shareholders (Ramesh Babulal Parekh, Kailash Parekh, and Gulab Parekh) and up to 5.27 million equity shares sold by existing investors (Green Desert Real Estate Brokers, Denver Bldg Mat & Decor TR LLC, Fleet Line Shipping Services LLC, IDFC First Bank Limited, and IDFC First Bank Limited).
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 Texal 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 Plarit; and
(iii) expansion in capacity of white als 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 white oil manufacturer by revenue in FY22. Including domestic and international sales, and is one of the top five players globally in terms of market share in CY21 (Source: Crail Report). As of June 30, 2022, the product suite under the “Divyor” brand included over 350 products. Primarily from the personal care, healthcare, and performance oils (“PHPO”), lubricants, and process and insulating oils (“PIO”) divisions. The products are used in the consumer healthcare, automotive industrial, power, and tyre and rubber sectors to manufacture end products.
The products are sold in over 100 countries around the world, with 3,529 customers in FY22. Including Procter & Gamble (P&G), Unilever, Marico, Dabur Encube, Patanjali Ayurved, Bajaj Consumer Care Emami, and Amrutanjan Healthcare. The company operates three manufacturing facilities in Taloja, Maharashtra, the Union Territory of Silvassa, Dadra and Nagar Haveli Daman and Diu, and Sharjah, United Arab Emirates, with a combined annual production capacity of 497,403 KL as of June 30, 2022 (enhanced to 522,403 KL in October 2022).
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