- The anchor book of the offer will open for a day on November 21
- Lot size 88 shares, multiples of 88 thereafter.
- The IPO comprises a fresh issue aggregating up to ₹302 crore and an Offer for Sale (OFS) of 1.17 crore shares worth ₹69 croreby promoters and existing shareholders
NE BUSINESS BUREAU
AHMEDABAD, NOV 17
Mumbai-based Gandhar Oil Refinery (India) Ltd on Friday said its ₹500-crore Initial Public Offering (IPO) will open on Wednesday, November 22 in the price band of ₹160 to ₹169 per equity share. The offer will close on Friday, November 24. The anchor book of the offer will open for a day on Tuesday, November 21.
The IPO comprises a fresh issue aggregating up to ₹302 crore and an Offer for Sale (OFS) of 1.17 crore shares worth ₹ 198.69 croreby promoters and existing shareholders.
Bids can be made for a minimum of 14,872 Equity Shares and in multiples of 88 Equity Shares thereafter.
Those offering shares in the OFS include promoters – Ramesh Babulal Parekh, Kailash Parekh and Gulab Parekh – and other shareholders – Fleet Line Shipping Services LLC, Denver Bldg Mat & Decor TR LLC and Green Desert Real Estate Brokers.
Proceeds from the fresh issue component will be used for payment of debt and for the purchase of equipment and civil work required for expansion in the capacity of automotive oil at the Silvassa plant. In addition, funds will be utilised for expansion in capacity of petroleum jelly and accompanying cosmetic product division at the company’s Taloja plant as well as expansion in capacity of white oils by installing blending tanks at the plant and 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.
The company’s revenue from operations grew 15.13 percent to ₹ 4,079.4 crore in FY23 from ₹ 3,543.3 crore in FY22. Profit after tax rose 30.3 percent to ₹ 213.17 crore from ₹ 163.58 crore in the same period. The PHPO was the largest business division contributing 55 percent to the topline in FY23, followed by lubricants with a 25 percent share in the revenue. The rest of the contribution to revenue came from PIO and channel partners.
The company has reserved 50 per cent of the offer for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will have 15 per cent shares reserved for them. Retail investors will get the remaining 35 per cent of shares allocated towards them.
The Equity Shares are proposed to be listed on both BSE Limited and National Stock Exchange of India Limited.
Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) and ICICI Securities Limited are the Book Running Lead Managers.
