Gandhar Oil Refinery IPO – Review, Bid, Size, Allotment, Subscription, GMP & RHP
Last Updated Date: Nov 29, 2023In the past few years, India has been getting quite a good number of IPOs each year.
Even as the year 2022 ended, many known companies filed for DRHP with SEBI to open their initial public offering probably in the year 2023. One such company is Gandhar Oil Refinery Limited.
The listing will be a mix of OFS and fresh issues. To know more about the Gandhar Oil Refinery IPO review, important dates, market tendency, and news of Gandhar Oil Refinery IPO follow this article.
| Face Value | Rs 2 |
| Price Band | Rs 160 to Rs 169 |
| Listing At | BSE, NSE |
| Min. Order Quantity | 88 Shares |
| Listing Date | December 5, 2023 |
| Offer for Sale | Rs 198.69 Crore |
| Fresh Issue | Rs 302.00 Crore |
| IPO Size | Rs 500.69 Crore |
| Tick Size | 1 |
Gandhar Oil Refinery IPO Overview
With an increasing emphasis on the consumer and healthcare end industries, Gandhar Oil Refinery is a top producer of white oils.
On December 20th, 2022 it was revealed that the company has filed for DRHP with SEBI.
The draft red herring prospectus states that the IPO consists of a fresh issue of equity shares valued at Rs. 302.00 crore and an offer for sale (OFS) of Rs 198.69 crores by the promoters and existing shareholders (DRHP).
To oversee the company’s IPO, merchant bankers Edelweiss Financial Services and ICICI Securities have been hired.
Gandhar Oil Refinery IPO Important Dates
| Events | Date |
| IPO Opening Date | November 22, 2023 |
| IPO Closing Date | November 24, 2023 |
| Basis of Allotment Finalization | November 30, 2023 |
| Refunds Initiation | December 1, 2023 |
| Credit of Shares to Demat Account | December 4, 2023 |
| Share Listing Date | December 5, 2023 |
With each IPO listing, the companies issue some Gandhar Oil Refinery IPO dates. These dates are sort of a schedule for different events concerning the IPO.
As of now, there are no details available on the different dates such as the bidding dates, allotment dates, refund dates, and so on. The information will be shared here in the above table once the IPO listing nears.
Gandhar Oil Refinery IPO Price, Size, Share Offerings
| Face Value | Rs.2 |
| Price Band | Rs 160 to Rs 169 |
| Offer for Sale | Rs 198.69 Crore |
| Fresh Issue | Rs 302.00 Crore |
| IPO Size | Rs 500.69 Crore |
Next to knowing the dates of the IPO, the investors also need to know the lot size, Gandhar Oil Refinery IPO price band, and issue size.
Based on the company’s DRHP, the fresh issue will be worth Rs. 302 Cr., and the offer for sale shares issued will be somewhere equal to 12,036,380 shares. As for the Gandhar Oil Refinery IPO size and price band, the information will get updated soon.
Gandhar Oil Refinery IPO Grey Market Premium
| Date | GMP (Rs.) | Kostak Rate (Rs.) | Subject to Sauda (Rs.) |
| 29 Nov 2023 | Rs 75 | Rs 400 | Rs 3000 |
| 28 Nov 2023 | Rs 75 | Rs 400 | Rs 3000 |
| 27 Nov 2023 | Rs 80 | Rs 400 | Rs 3000 |
| 25 Nov 2023 | Rs 70 | Rs 400 | Rs 3000 |
| 23 Nov 2023 | Rs 70 | Rs 400 | Rs 3000 |
| 22 Nov 2023 | Rs 70 | NA | NA |
| 21 Nov 2023 | Rs 55 | NA | NA |
| 20 Nov 2023 | Rs 50 | NA | NA |
| 19 Nov 2023 | Rs 50 | NA | NA |
| 16 Nov 2023 | Rs 50 | NA | NA |
Many investors like to monitor the grey market of IPOs along with the premium on which it is getting traded.
A higher trading premium over the price band indicates a better demand meaning the market is excited about the IPO. Investing in such stocks will always be a profitable proposition.
However, since the IPO is live now, there is all information on the Gandhar Oil Refinery IPO GMP available. Soon it will be updated in the above table.
Gandhar Oil Refinery IPO Subscription Status
| Day / Date | QIB | NII | RII | Total Subscription |
| 1st Day – 22nd Nov | 1.35x | 8.01x | 7.35x | 5.78x |
| 2nd Day – 23rd Nov | 3.14x | 27.24x | 18.25x | 15.86x |
| 3rd Day – 24th Nov | 3.35x | 33.43x | 20.18x | 18.21x |
| Shares Offered or Net Issue | 5,925,346 | 4,444,010 | 10,369,356 | 38,514,750 |
The Gandhar Oil Refinery IPO Subscription depends on how many shares are getting subscribed during the bidding dates.
Usually, IPOs of major sector players like Gandhar Oil Refinery get oversubscribed on the first or second day itself, however, if it drags to the third day, the investors can keep track of the shares subscribed and available. Get quick access to it by clicking here.
Gandhar Oil Refinery IPO Allotment Status
The Gandhar Oil Refinery IPO Allotment of the shares will be done once the bidding closes. The company will either allot all the investors using a pro-rata basis or refund the oversubscribed shares.
For the oversubscribed shares, the funds will be refunded on a specific date to avoid any confusion. The allotment status will give the investors an idea of how the shares are getting allotted. You can check the status here.
Gandhar Oil Refinery IPO Live Performance
To continue monitoring the Gandhar Oil Refinery IPO price and Gandhar Oil Refinery IPO performance, check its live performance using this link here.
It will help understand the market sentiment and the demand for the shares. A positive trend will ensure better investment returns.
Subscribe to Gandhar Oil Refinery IPO – Open Free Demat Account Now!
Latest Gandhar Oil Refinery IPO News
The most important news circulating in the market about Gandhar Oil Refinery Limited is about their IPO. The news came out on 20th December 2022 and most of the media covered it by Christmas Eve.
Apart from the number of OFS shares and the fresh issue size, not much information is available. All details and Gandhar Oil Refinery IPO news will be revealed in due time.
Gandhar Oil Refinery – Company Review
Gandhar Oil Refinery was founded in 1993 and has its corporate headquarters in Mumbai, Maharashtra. The business runs oil refineries.
The company manufactures specialized oils and lubricants such as liquid paraffin, greases, automobile lubricants, petroleum jelly, and oils for processing rubber.
The majority of their goods are sold under the “DIVYOL” brand name. The Group, one of India’s fastest-growing business companies, employs 650 people and has a worldwide network of subsidiaries and offices.
With the help of their three powerful Speciality Oil Blending Plants—one in each of Taloja, Silvassa, and Sharjah—they are renowned for providing services to clients across the world (Texol Lubritech FZC).
The business is currently pushing for its IPO as it looks to the future. Soon, further information on the IPO will be released.
Products or Services
The company’s product lineup included more than 350 items as of June 30, 2022, mostly in the “Divyol” brand’s divisions for lubricants, process and insulation oils (“PIO”), and personal care, healthcare, and performance oils (“PHPO”).
Leading Indian and international businesses to use the items as raw materials to create finished goods for the automotive, consumer, healthcare, industrial, power, and tyre & rubber industries.
Currently, Gandhar Oil Refinery Limited has three manufacturing facilities spanning 1,28,454 square meters, two of which are in Western India and one of which is in Sharjah, United Arab Emirates.
These facilities serve both domestic and international activities. The total annual production capacity of the company’s manufacturing facilities was at 497,403 KL as of June 30, 2022, and it was increased to 522,403 KL in October 2022.
Promoters and Holding
The promoters of the company are listed below:
- Ramesh Babulal Parekh
- Samir Ramesh Parekh
- Aslesh Ramesh Parekh
Is Gandhar Oil Refinery good for Investment?
In the quarter that ended on June 30, 2022, Financial Years 2022, 2021, and 2020, there were 87.38%, 68.86%, 66.37%, and 59.30%, respectively, of repeat clients.
Also, the capital efficiency has increased, as seen by the company’s RoE of 39.4% in the fiscal year 2022 and an increase in RoCE from 27.63% in FY 2020 to 46.99% in FY 2022.
Thus, in terms of operations, client retention and revenue generation Gandhar Oil Refinery Limited is showing quite an impressive performance. With this in mind, the company confidently filed for the Gandhar Oil Refinery IPO.
Gandhar Oil Refinery Financial Statements
| Amount (in INR & Million) | ||||
| 30-Jun-23 | 31-Mar-23 | Mar-22 | 31-Mar-21 | |
| Assets | 17,955.74 | 16,134.35 | 13,182.09 | 11,009.32 |
| Revenue | 10,715.15 | 41,017.91 | 35,689.63 | 22,425.90 |
| Expense | 10,043.79 | 38,308.39 | 33,442.40 | 21,294.24 |
| Profit After Tax | 542.84 | 2,131.75 | 1,635.84 | 1,003.22 |
The white oil market is the speciality oils industry segment with the fastest rate of growth. One of the top five players globally in terms of market share in the calendar year 2021, Gandhar Oil Refinery Limited is India’s largest manufacturer of white oils by revenue in the financial year 2022, including domestic and overseas sales of 212.
Products from Gandhar Oil Refinery Limited were available in more than 100 nations as of June 30, 2022. Over 3,500 consumers were served by the business in the fiscal year 2022.
The firm generated sales of Rs 35,688.03 million for the fiscal year 2022 as opposed to Rs 22,423.83 million the previous year. In comparison to last year, the net profit for the period is Rs 1,600.69 million instead of Rs 984.94 million. In contrast to FY 2021, profit increased by almost 62% in FY 2022.
Additional details on the company’s Revenue, Assets, and liability are shared in the table above sharing details on the Gandhar Oil Refinery IPO.
| Earnings per Equity Share (in Million) | ||||
| 30-Jun-23 | 31-Mar-23 | Mar-22 | 31-Mar-21 | |
| Basic & Diluted | 5.60 | 23.77 | 18.42 | 12.54 |
Gandhar Oil Refinery IPO Review
The next thing to discuss in this Gandhar Oil Refinery IPO Review is that the net proceeds from the new issuance, totaling Rs. 357 crores, will be used to finance the repayment or early repayment of a loan facility, the purchase of equipment and construction work, the expansion of production capacity for white oils, petroleum jelly, and automotive oil by installing blending tanks, working capital requirements, and general corporate purposes.
As the company invests in growth, the investment fund of the different shareholders will also grow and the returns will become steady and high. These facts make the Gandhar Oil Refinery IPO an attractive offer.
Gandhar Oil Refinery IPO Details
Here are few more details you need to know before investing in Gandhar Oil Refinery IPO –
Gandhar Oil Refinery IPO Issue Object
The Gandhar Oil Refinery has proposed diverse objectives for making the IPO offer and some of the objectives are:
-
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;
-
Capital expenditure through the purchase of equipment and civil work required for (i) expansion in capacity of automotive oil at our Silvassa Plant; (ii) expansion in the 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;
- Funding working capital requirements of our Company
- General corporate purposes
Gandhar Oil Refinery IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
-
Leading market share of the Indian white oils market with significant overseas sales, focused on theconsumer and healthcare end-industries
-
Extensive and diversified customer base and a supplier base comprised of leading oil companies withcompetitive pricing terms
- Strategically located manufacturing facilities and in-house R&D capabilities
- The resilient, flexible and scalable business model with a prudent risk management framework;
- Track record of consistent financial performance
- Experienced and qualified management team.
Quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-23 | 23.77 | 32.28% | 95.03 |
| 31-Mar-22 | 18.42 | 32.54% | – |
| Mar-21 | 12.54 | 24.77% | – |
Gandhar Oil Refinery IPO Lead Managers
Here is the list of Lead managers –
- Edelweiss Financial Services Limited
- ICICI Securities Limited
Gandhar Oil Refinery IPO Registrar to offer
Check out the details of the registrar here –
Gandhar Oil Refinery IPO – Other Details
- Statutory Auditor – Kailash Chand Jain & Co, Chartered Accountants
- Legal Counsel to the Company – S&R Associates
- Bankers to the Company – State Bank of India, IndusInd Bank Limited, IDFC FIRST Bank
Gandhar Oil Refinery IPO Verdict by Stock Brokers
It is still too soon for any verdict on the Gandhar Oil Refinery IPO as it is completely at its initial stage of processing.
However, as the company focuses on expansion by utilizing the funds raised, the growth of the company will bring in higher revenue and better returns on investment.
So, this can become one of the IPOs that many investors will look out for to add to their portfolios.
Gandhar Oil Refinery IPO – Conclusion
The review and news on the IPO will keep on updating as the company is only at the initial stage of going public. The details will be available once the company gets approval from the SEBI.
Hope the Gandhar Oil Refinery IPO Review has helped you in understanding the IPO scenario of the company. However, always remember to conduct your analysis before investing your hard-earned money
To Subscribe to Gandhar Oil Refinery IPO – Open Demat Account Now!
Gandhar Oil Refinery IPO Review FAQs
Check out the FAQs on Gandhar Oil Refinery IPO –
What is the Issue Size of Gandhar Oil Refinery IPO?
The Company is making an initial public offer of 29,626,732 equity shares. They vividly portray the aspects of the issue in this article. You can check the stats on the fresh issue, Offer for sale, and net issue.
What is the Price band of Gandhar Oil IPO?
The price band for this particular IPO ranges between Rs 160 to Rs 169. As far as the face value of the share is concerned, it is Rs.2 per share.
What is the Gandhar Oil IPO Open Date?
The opening and closing dates for this IPO have been updated. The IPO is set to open on November 22, 2023, while the closing date is set at November 24, 2023.
What is the Gandhar Oil IPO Allotment Date?
They also have the news regarding the respective allotment dates of this IPO. The basis of Allotment finalization is on November 30, 2023, refund initiation is on December 1, 2023, credit of shares is on December 4, 2023, and share listing date is on December 5, 2023.
What is the Gandhar Oil IPO Listing Date?
Shares of this company shall be listed in the exchanges on December 5, 2023. The date, when the listing would be done, is stagnant on December 5, 2023.
Who is the Registrar of Gandhar Oil IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. Link Intime India Private Limited. Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of Gandhar Oil IPO?
Here are the promoters of this IPO – MR. RAMESH BABULAL PAREKH, MR. SAMIR RAMESH PAREKH AND MR. ASLESH RAMESH PAREKH. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is the GMP of Gandhar Oil IPO?
They have obtained the GMP of this IPO and it is Rs. 75. Further insights of the Kostak rate and subject to sauda or SS are also included in this report.
Is Gandhar Oil IPO Good for Investment?
They have further provided the financial status of the company in this article, from the past few years. You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of Gandhar Oil Refinery Company?
They have the information on company financials, and according to that, they have the figures from the last few years to provide. PAT for the financial year 2023 in Million is 2,131.75, 2022 is 1,635.84, 2021 is 1,003.22. PAT from Jun 2023 is 542.84.
Featured Topics