Gandhar Oil Refinery India LTD. IPO: Review, Valuation & GMP

Gandhar Oil Refinery India Limited IPO - Complete Overview

Gandhar Oil Refinery India Limited, a leading player in the white oils industry, has emerged as a reliable producer of a diverse range of products with a strong emphasis on meeting the needs of the consumer and healthcare sectors. As of June 30, 2022, the company takes pride in its extensive portfolio, boasting over 350 products categorized into personal care, healthcare and performance oils (PHPO), lubricants, and process and insulating oils (PIO). 

These products, marketed under the brand name "Divyol," play a crucial role as key components in various end products across sectors such as consumer goods, healthcare, automotive, industrial, power, tires, and rubber.

It 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.

 

What does the company do?

Gandhar Oil Limited's global outreach is notable, having successfully reached customers in 100 countries worldwide. The company has built lasting relationships with over 3500 clients, including prestigious names such as Procter & Gamble, Unilever, Marico, Dabur, Encube, Patanjali Ayurved, Bajaj Consumer Care, Emami, and Amrutanjan Healthcare. This broad clientele attests to the company's commitment to quality and innovation in serving diverse industries.

 

 

Gandhar Oil Refinery India Limited IPO Overview

Gandhar Oil Refinery India Limited IPO date is slated to be open for subscription from November 21, 2023, to November 23, 2023. This BSE NSE IPO follows a Book-Built Issue IPO.

The Gandhar Oil Refinery India Limited IPO price is not fixed. The upcoming BSE NSE IPO will be listed on December 4, 2023.

The total issue size of this IPO amounts to Rs. 500.00   Crores. Within this total issue, 35% is issued to retail investors.

 

Gandhar Oil Refinery India Limited IPO timetable (Tentative)

Events	Date
IPO Opening Date	22 November 2023
IPO Closing Date	24 November 2023
IPO Allotment Date	30 November 2023
Refund initiation	1 December 2023
IPO Listing Date	5 December 2023

 

Gandhar Oil Refinery India Limited IPO Details

IPO Opening & Closing Date	22 November to 24 November 2023
Face value	Rs. 2 per Share
Issue Price	Rs. 160 to Rs.169 per Share
Lot Size	88 Shares
Price of 1 lot	Rs. 14,872
Total Issue Size	29,626,732 Shares (aggregating up to Rs. 500.69 Cr)
Offer for Sale	11,756,910 shares of Rs. 2 (aggregating up to Rs.198.69 Cr)
Fresh Issue	17,869,822 Shares (aggregating up to Rs. 302.00 Cr)
Listing at	BSE NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

 

Gandhar Oil Refinery India Limited IPO Lot Details

Applications	Lot	Shares
Minimum Lot Investment (Retail)	1 Lot	88
Maximum Lot Investment (Retail)	13 Lot	1144
Minimum Lot Investment (HNI)	14 Lot	1,232
Maximum Lot Investment (HNI)	67 Lot	5,896

 

Gandhar Oil Refinery India Limited IPO Reservation

QIB Shares Offered	50%
Retail Shares Offered	35%
HNI Shares Offered	15%

 

Company Financial

(Amount in Crores)

Period	FY 23	FY 22	FY 21
Total Assets	1,613.44	1,317.83	1,097.36
Total Revenue	4,101.79	3,397.82	2,516.69
PAT	213.18	184.15	160.95
Net worth	760.21	560.22	375.43
Reserve & Surplus	719.19	520.51	352.04
Total Borrowings	169.53	158.16	176.78

 

Revenue-Breakdown by Business Division

(in percentage)

Segment Revenue	FY 23	FY 22	FY 21
PHPO	54.96	53.50	44.64
Lubricants	25.03	21.48	27.38
PIO	9.51	10.54	12.68
Channel Partners	10.50	14.48	15.30
Total	100.00	100.00	100.00

 

Revenue-Breakdown by Geography-Division

(in percentage)

Region	FY 23	FY 22	FY 21
APAC	70.28	61.84	67.90
Americas	14.77	19.59	12.85
Africa	12.74	14.80	16.24
Europe	2.21	3.77	3.01
Total	100.00	100.00	100.00

 

Revenue By Operations

(Amount in Million)

Particulars	FY 23	FY 22	FY 21
Revenue from Operations	40,794.41	35,433.74	22,210.01
Other Income	223.50	255.89	215.88
Total	41,017.91	35,689.63	22,425.90

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Covering day-to-day operational needs of the company
• Providing a loan to Texol for repaying their existing loan from the Bank of Baroda
• Investing in equipment and construction for expanding production at Silvassa and Taloja plants
• Meeting general corporate needs

 

Promoters of Gandhar Oil Refinery India Limited IPO

The promoters of Gandhar Oil Refinery India Limited IPO are Mr. Ramesh Babulal Parekh, Mr. Samir Ramesh Parekh, and Mr. Aslesh Ramesh Parekh.

Pre-issue Promoter shareholding	87.50%
Post-issue Promoter shareholding	-

 

Gandhar Oil Refinery India Limited IPO Lead Managers

• ICICI Securities Limited
• Edelweiss Financial Services Ltd

 

Peers comparison of Gandhar Oil Refinery India Limited IPO

Name of the Company	Total Revenue (in millions)	P/ E	EPS (Basic) (Rs.)
Gandhar Oil Refinery India Limited	33,890.72	--	20.99
Apar Industries Ltd	93,199.90	25.71	67.09
Savita Oil Technologies Ltd	29,382.15	8.25	37.62
Panama Petrochem Ltd	21,323.54	9.49	38.08
Galaxy Surfactants Ltd	36,857.10	35.37
Privi Speciality Chemicals Ltd	14,037.20	47.21	24.93
Rossari Biotech Ltd	14,829.74	42.00	17.81
Fairchem Organics Ltd	6,431.84	25.35	52.15

 

 

IPO's Valuations

To evaluate the IPO's valuation, we can study the information presented in the company's DRHP and RHP. Gandhar Oil Refinery India Limited IPO's price is set at Rs. 160 to Rs. 169 per share, with an EPS of Rs. 23.77. Based on the issue price the company's P/E ratio is calculated at 7.10.

 

Dividend Policy

The company decided on a dividend policy on November 16, 2022, but past dividends don't predict future ones. Whether we pay dividends depends on factors like profits, capital needs, taxes, legal obligations, and overall financial health. External factors like laws, economic conditions, market practices, and technology changes also play a role.

 

IPO's Strengths

• Well-placed manufacturing and research facilities
• Diverse customer and supplier base with competitive pricing
• Experienced and qualified management team
• Leading share in the Indian white oils market, with significant global sales in consumer and healthcare industries
• Flexible and resilient business model with careful risk management
• Consistent track record of financial performance

 

IPO's Weaknesses

• Vulnerability to Global Economic Conditions
• Sensitivity to Raw Material Price Fluctuations

 

IPO GMP Today

The Latest GMP of Gandhar Oil Refinery India Limited IPO is Rs. 73.

 

Conclusion

In summary, the Gandhar Oil Refinery India Limited IPO offers a glimpse into a well-established player in the white oils industry. With a diverse product portfolio, global reach, and a strong client base, the company has a notable market presence.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

Thank You for reading this blog.
Hope you loved the IPO analysis.
Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

 

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock market.