About Gandhar Oil Refinery India Limited
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.
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.
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.
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 Gandhar Oil Refinery India Limited IPO
| Issue Period | November 22, 2023, to November 24, 2023 |
| Deadline for accepting UPI mandate | 5:00 PM on the issue Closing Date. |
| Finalization of Allotment | November 30, 2023 – Wednesday |
| Initiation of Refunds | December 1, 2023 – Thursday |
| Credit of Shares | December 4, 2023 – Friday |
| Date of Listing | December 5, 2023 – Monday |
| Mandate end date | December 9, 2023 – Friday |
| Anchor Investors Lock-In End Date | December 24, 2023 – Monday |
How to apply to the Gandhar Oil Refinery India Limited IPO?
You can apply for the Gandhar Oil Refinery India Limited IPO using any supported UPI app by following two steps:
- Enter your bid on Kite
- 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 for Gandhar Oil Refinery India Limited IPO?
You can check the allotment status for the Gandhar Oil Refinery India Limited IPO on the website of the Registrar and Transfer agent. Alternatively, you can also check the allotment status on the NSE website.