Gandhar Oil Refinery India Limited is launching its IPO. The IPO opens for subscription on November 21, 2023, and will close on 23rd November.
What does Gandhar Oil Refinery do?
Founded in 1992, Gandhar Oil Refinery India Limited specializes in the production of white oils, catering primarily to the consumer and healthcare sectors. The company sells over 350 different products under the “Divyol” brand. Their products primarily include personal care, healthcare, performance oils, lubricants, process oils, and insulating oils.
The company operates in three main business divisions:
- Personal Care, Healthcare, and Performance Oils (PHPO): This division offers white oils, waxes, and jellies used in consumer goods, healthcare, plastics, chemicals, textiles, and fragrance industries.
- Lubricants: Focused on automotive and industrial oils, serving the automobile sector as well as industrial machines and equipment.
- Process and Insulating Oils (PIO): Comprising transformer oils and rubber processing oils, catering to transformer manufacturers, the power generation and distribution sector, and tyre and rubber product manufacturers.
The company’s products reach over 100 countries, serving 3,500 customers in FY 2022. Key clients include Procter & Gamble, Unilever, Marico, Dabur, Encube, Patanjali Ayurved, Bajaj Consumer Care, Emami, and Amrutanjan Healthcare, with manufacturing in India and the UAE.
What is the issue size of the Gandhar Oil Refinery IPO?
The company’s public offering consists of a fresh issue worth approximately Rs 357 crores and an offer for sale by existing shareholders worth approximately Rs 143 crores, for a total of around Rs 500 crores in equity shares.
Financials of Gandhar Oil Refinery IPO
| Financial Year | Total Assets (₹ crores) | Total Revenue (₹ crores) | Profit After Tax (₹ crores) | EPS | EBITDA (₹ crores) |
|---|---|---|---|---|---|
| March 31, 2021 | 1,100.93 | 2,242.59 | 161.13 | 12.54 | 248.56 |
| March 31, 2022 | 1,318.20 | 3,568.96 | 184.29 | 18.42 | 267.47 |
| March 31, 2023 | 1,613.43 | 4,101.79 | 213.17 | 23.77 | 316.61 |
| June 30, 2023 | 1,795.57 | 1,071.51 | 54.28 | 5.60 | 84.05 |
Risk factors to consider:
Dependence on Specific Business Divisions: Heavy reliance on personal care, health care, and performance oil divisions. Any downturns in these sectors or ineffective sales management could significantly impact the company’s operations and financial health.
Raw Material Supply and Price Volatility: Risks related to disruptions in the supply of raw materials and unpredictable fluctuations in their prices, could impact the company’s operational efficiency, financial health, and cash flow.
Counterparty Credit Risk: The company faces risks due to the potential non-performance or payment delays by contractual partners, which could disrupt normal business activities.
Currency Exchange Rate Fluctuations: Business transactions in multiple currencies, including a significant portion in USD, pose a risk of adverse effects from exchange rate volatility on the company’s financial condition and operations.
Operational Risks in Manufacturing: Risks of slowdowns, shutdowns, or underutilization of manufacturing facilities due to factors like labor unrest, or insufficient supply of essential utilities like electricity, fuel, or water.
Supplier Dependence and Lack of Long-Term Contracts: Heavy reliance on a limited number of suppliers for raw materials without long-term contracts, poses a risk if these suppliers face business deterioration or reduce their dealings with the company.
Uncertainty of Pro Forma Financial Information: The Pro Forma Consolidated Financial Information provided is not indicative of future results or financial position and should not be seen as a substitute for past results.
Transportation Risks: Dependence on Parekh Bulk Carriers and other third-party transporters for transporting raw materials and finished products. Disruptions in these arrangements or increases in transportation costs could adversely affect the business.
Risks in Overseas Markets: A significant portion of revenue comes from overseas sales. The inability to manage or grow the business in these markets could materially affect the company’s growth, operations, and financial results.
Regulatory Compliance Risks: Potential adverse effects on business due to non-compliance with or changes in safety, health, environmental laws, and other regulations in manufacturing operations.
Schedule/Timeline of ASK Automotive IPO
| Issue Period | November 21, 2023, to November 23rd, 2023 |
|---|---|
| Price band | ₹ 160 -169 |
| Minimum Bid quantity | 88 & Multiples thereof |
| Deadline for accepting UPI mandate | 5:00 PM on the issue Closing Date. |
| Finalization of Allotment | November 29, 2023 - Wednesday |
| Initiation of Refunds | November 30, 2023 - Thursday |
| Credit of Shares | December 1, 2023 - Friday |
| Date of Listing | December 4, 2023 - Monday |
| Mandate end date | December 8, 2023 - Friday |
| Anchor Investors Lock-In End Date | December 25, 2023 - Monday |
How to apply for the Gandhar Oil Refinery India Limited IPO?
You can apply for the Gandhar Oil Refinery India Limited using any supported UPI app by following two steps:
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Enter your bid on Kite
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Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
How to check the allotment status of the Gandhar Oil Refinery India Limited IPO?
You can check the allotment status for the Gandhar Oil Refinery India IPO on the website of the Registrar and Transfer Agent. Alternatively, you can also check the allotment status on the NSE website.