Gandhar Oil Refinery India Limited IPO
Gandhar Oil Refinery India Limited
IPO Open
21 November 2023
IPO Close
23 November 2023
Price Band
₹160 – ₹169
Issue Size
₹500 Cr
Market Cap
₹
Min. Lot Size
-
Face value
₹2
GMP
₹
IPO Timeline
IPO Open
22 November 2023
IPO Close
24 November 2023
Allotment finalisation
29 November 2023
Refund initiation
29 November 2023
Demat transfer
29 November 2023
Listing
30 November 2023
About Gandhar Oil Refinery
Gandhar Oil Refinery India Limited, established in 1992, has carved a niche as a leading manufacturer of white oils in India, with a growing focus on the consumer and healthcare industries. The company’s extensive and diversified customer base, comprising over 3,500 clients including companies like Procter & Gamble (“P&G”), Unilever, Marico, Dabur, Encube, Patanjali Ayurved, Bajaj Consumer Care, Emami and Amrutanjan Healthcare as of FY2022, speaks volumes about its unwavering commitment to quality and customer satisfaction.
Gandhar’s comprehensive product portfolio encompasses a wide spectrum of specialty oils and lubricants, including automotive oils, industrial oils, transformer oils, rubber processing oils, mineral oils, petroleum jelly, wax, and specialty base oils. These products, marketed under the brand name “Divyol,” adhere to stringent national and international quality standards, earning approvals from reputed organizations like REXROTH, ELECON, RDSO, FDA, ERDA, CPRI, and BIS.
Gandhar’s unwavering commitment to excellence is further exemplified by its certifications under ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, and GMP. Additionally, the company holds Food and Drug Administration (FDA) and DSIR certifications, underscoring its dedication to producing safe and high-quality products.
With three decades of expertise in the specialty oils industry, Gandhar has established itself as a trusted name, consistently delivering superior products tailored to the evolving needs of its customers. The company’s commitment to innovation, sustainability, and ethical practices has propelled it to the forefront of the Indian oil industry.
About Gandhar Oil Refinery India Limited IPO
Gandhar Oil Refinery India Limited, a leading manufacturer of specialty oils in India, is set to launch its initial public offering (IPO) on November 21, 2023. The IPO, which comprises a fresh issue of Rs 357 crore and an offer for sale (OFS) of 1.2 crore shares, is expected to raise Rs 500 crore.
Industry Overview
The specialty oils industry is a dynamic and growing sector within the broader lubricants and petroleum refining industry. It encompasses a wide range of high-value-added oils and lubricants specifically designed for specific applications in various industries, including:
- Consumer goods: Personal care products, cosmetics, pharmaceuticals
- Healthcare: Medical applications, pharmaceutical formulations
- Automotive: Engine oils, gear lubricants, transmission fluids
- Industrial: Heat transfer fluids, hydraulic fluids, transformer oils
- Power: Turbine oils, transformer oils, insulating fluids
- Tires and rubber: Processing oils, plasticizers, extenders
You can have a look at their product range here.
Gandhar Oil Refinery India Limited operates within a competitive specialty oils market, where it faces established players like Indian Oil Corporation (IOCL), Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation Limited (BPCL), Castrol, and Shell. These companies have significant market share and brand recognition.
Despite the stiff competition, Gandhar has carved a niche in the white oils segment, the fastest-growing segment of the specialty oils market. White oils are highly refined mineral oils used in various applications, including personal care products, cosmetics, pharmaceuticals, and food processing. Gandhar’s focus on white oils has allowed it to differentiate itself from its competitors and establish a strong position in this growing market.
Sure, here is a more detailed industry overview of Gandhar Oil Refinery India Limited, its competitive landscape, future scope, and growth prospects, along with a peer analysis:
Industry Overview
The specialty oils industry is a dynamic and growing sector within the broader lubricants and petroleum refining industry. It encompasses a wide range of high-value-added oils and lubricants specifically designed for specific applications in various industries, including:
- Consumer goods: Personal care products, cosmetics, pharmaceuticals
- Healthcare: Medical applications, pharmaceutical formulations
- Automotive: Engine oils, gear lubricants, transmission fluids
- Industrial: Heat transfer fluids, hydraulic fluids, transformer oils
- Power: Turbine oils, transformer oils, insulating fluids
- Tires and rubber: Processing oils, plasticizers, extenders
The specialty oils industry is driven by several factors, including:
- Rising urbanization and disposable incomes: Increased demand for consumer goods and personal care products
- Technological advancements: Development of new and sophisticated machinery, requiring specialized lubricants
- Environmental concerns: Growing preference for eco-friendly and sustainable lubricants
- Stringent regulations: Demand for high-performance lubricants that meet stringent environmental and safety standards
Competitive Landscape
Gandhar Oil Refinery India Limited operates within a competitive specialty oils market, where it faces established players like Indian Oil Corporation (IOCL), Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation Limited (BPCL), Castrol, and Shell. These companies have significant market share and brand recognition.
Despite the stiff competition, Gandhar has carved a niche in the white oils segment, the fastest-growing segment of the specialty oils market. White oils are highly refined mineral oils used in various applications, including personal care products, cosmetics, pharmaceuticals, and food processing. Gandhar’s focus on white oils has allowed it to differentiate itself from its competitors and establish a strong position in this growing market.
Gandhar’s Competitive Advantages
Gandhar Oil Refinery India Limited has several competitive advantages that position it well for continued growth in the specialty oils market:
- Strong track record: Gandhar has a proven track record of consistent growth in revenue, profit, and market share over the years.
- Diversified product portfolio: Gandhar offers a wide range of specialty oils and lubricants, catering to a diverse spectrum of industries. This diversification provides a hedge against fluctuations in any single sector.
- Strong customer base: Gandhar has a loyal customer base, including leading Indian and global companies, demonstrating its reputation and product quality.
- Experienced management team: Gandhar is led by an experienced management team with a deep understanding of the specialty oils industry.
- Focus on innovation and sustainability: Gandhar is committed to innovation and sustainability, constantly developing new products and processes that meet the evolving needs of its customers and minimize environmental impact.
Future Scope and Growth Prospects
The future of the specialty oils industry looks promising, with several growth drivers in place:
- Growing demand for specialty oils: The demand for specialty oils is expected to continue to grow due to rising urbanization, technological advancements, and environmental concerns.
- Increasing adoption of white oils: White oils are expected to gain further traction due to their versatility and eco-friendly properties.
- Expanding geographic reach: Gandhar is exploring opportunities to expand its geographic reach into new markets, both domestically and internationally.
Financials of Gandhar Oil Refinery India Limited
| 31 Mar 2022 | 31 Mar 2021 | |
| Assets | 1,317.83 | 1,097.36 |
| Revenue | 3,397.82 | 2,516.69 |
| Profit After Tax | 184.15 | 160.95 |
| Net Worth | 560.22 | 375.43 |
| Reserves and Surplus | 520.51 | 352.04 |
| Total Borrowing | 158.16 | 176.78 |
All Values are in Crores.
Overall, Gandhar Oil Refinery India Limited is a financially healthy company with a strong track record of growth and profitability.
- Assets: The company’s assets have grown significantly over the past year, from ₹1,097.36 crore to ₹1,317.83 crore. This growth is indicative of the company’s expansion and investment in new opportunities.
- Revenue: Revenue has also increased steadily, from ₹2,516.69 crore to ₹3,397.82 crore. This growth is driven by strong demand for the company’s products and services.
- Profitability: Profit after tax has also improved, from ₹160.95 crore to ₹184.15 crore. This improvement is attributed to higher margins, cost optimization, and capacity expansion.
- Net worth: The company’s net worth has increased from ₹375.43 crore to ₹560.22 crore. This growth is a testament to the company’s strong financial position.
- Reserves and surplus: Reserves and surplus have also increased from ₹352.04 crore to ₹520.51 crore. This growth indicates the company’s ability to generate and retain profits.
- Total borrowing: Total borrowing has decreased from ₹176.78 crore to ₹158.16 crore. This reduction in debt demonstrates the company’s commitment to financial prudence.
Objective of the IPO
Gandhar Oil Refinery India Limited is planning to utilize the capital generated from its IPO to:
Finance the repayment/pre-payment of a loan facility: The company has availed a loan from Bank of Baroda and plans to use a portion of the IPO proceeds to repay or prepay this loan. This will reduce the company’s debt burden and improve its financial position.
Expand the capacity of automotive oil: The company plans to use a portion of the IPO proceeds to expand the capacity of its automotive oil production facility at its Silvassa plant. This will allow the company to meet growing demand for its automotive oils and increase its market share in this segment.
Expand the capacity of petroleum jelly and accompanying cosmetic product division: The company plans to use a portion of the IPO proceeds to expand the capacity of its petroleum jelly and accompanying cosmetic product division at its Taloja plant. This will allow the company to meet growing demand for its petroleum jelly and cosmetic products and increase its market share in this segment.
Invest in Texol: The company plans to use a portion of the IPO proceeds to invest in its material subsidiary, Texol. This investment will help Texol to expand its business and increase its profitability.
Funding working capital requirements and general corporate purposes: The company plans to use a portion of the IPO proceeds to fund its working capital requirements and general corporate purposes. This will help the company to meet its day-to-day operational expenses and pursue new business opportunities.
Promotor Share Holding Pattern
Pre IPO
Post IPO
FAQ about Gandhar Oil Refinery India Limited
Gandhar Oil Refinery India Limited is a leading manufacturer of specialty oils in India, with a focus on white oils used in industries such as personal care, cosmetics, pharmaceuticals, and food processing.
Gandhar Oil Refinery India Limited IPO is set to open on November 21, 2023, and close on November 23, 2023.
The price band for the IPO shares is ₹160 – ₹169.
The IPO comprises a fresh issue of Rs 357 crore and an offer for sale (OFS) of 1.2 crore shares, with an overall expectation to raise Rs 500 crore.
The minimum lot size for the IPO shares is currently not specified.
The face value of the company’s shares is Rs 2.
Gandhar Oil Refinery’s client base includes over 3,500 clients, with notable names such as Procter & Gamble, Unilever, Marico, Dabur, Patanjali Ayurved, and more.
The company holds certifications under ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, GMP, Food and Drug Administration (FDA), and DSIR.
Gandhar Oil Refinery competes with established players like Indian Oil Corporation (IOCL), Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation Limited (BPCL), Castrol, and Shell.
The company has carved a niche in the white oils segment, which is the fastest-growing segment of the specialty oils market.
Gandhar Oil Refinery has competitive advantages, including a strong track record, diversified product portfolio, loyal customer base, experienced management team, and a focus on innovation and sustainability.
The IPO proceeds will be utilized for purposes such as loan repayment, expansion of automotive oil capacity, expansion of petroleum jelly and cosmetic product division, investment in Texol, and funding working capital requirements.
The IPO is scheduled to open on November 21, 2023, with listing anticipated on 30 November 2023.
As of March 2022, the company’s assets have grown to ₹1,317.83 crore, revenue to ₹3,397.82 crore, and net worth to ₹560.22 crore.
The company anticipates growth through increasing demand for specialty oils, adoption of white oils, geographic expansion, and ongoing commitment to innovation and sustainability.
