Gandhar Oil Refinery IPO - Everything You Must Know

22 December 2023
5 min read
Gandhar Oil Refinery IPO - Everything You Must Know
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Gandhar Oil Refinery, India's leading manufacturer of white oil, is set to make its initial public offering on 22nd November, 2023. The company aims to raise Rs 500.69 crore through a fresh issue of 1.78 crore shares and an offer-for-sale of 1.17 crore shares. It is a good investment opportunity for someone seeking exposure to the white oil industry. 

About Gandhar Oil Refinery

Gandhar Oil Refinery, founded in 1989, is a leading manufacturer of white oils in India, which caters to the personal care, healthcare, automotive, industrial, tyre and rubber industries. As of June 30, 2023, there are over 440 products offered by the company under the brand name - Divyol.

The company’s products are used as ingredients in a wide range of products, including cosmetics, pharmaceuticals, lubricants and electrical insulation fluids. 

Key Things to Know About Gandhar Oil Refinery IPO

Here are the 10 important things you should know about Gandhar Oil Refinery IPO. Let’s look at the details below-

IPO Date

22 November, 2023 to 24 November, 2023

Price Band

Rs 160 to Rs 169 per share

Face Value

Rs 2 per share

Lot Size 

88

Total Issue Size

29,626,732 shares

(aggregating up to Rs 500.69 Cr)

Fresh Issue

17,869,822 shares

(aggregating up to Rs 302.00 Cr)

Offer for Sale

11,756,910 shares of Rs.2

(aggregating up to Rs 198.69 Cr)

  • Gandhar Oil Refinery IPO Date

The Gandhar Oil Refinery IPO will open for subscription on 22nd November, 2023 and close on 24th November, 2023.

  • Listing Date

As per the IPO schedule, Gandhar Oil Refinery’s shares trading will start from 5th December, 2023.

  • Offer Details

  • The company plans to raise Rs 500.69 crore. The offer comprises of a fresh issue of 1.78 crore shares which is worth Rs 302 crore and an offer-for-sale of 1.17 crore shares which is worth Rs 198.69 crore.
  • Promoters Ramesh Babulal Parekh, Kailash Parekh, and Gulab Parekh will sell 22.5 lakh shares each in the offer-for-sale.
  • Green Desert Real Estate Brokers, Denver Bldg Mat & Décor TR LLC, and Fleet Line Shipping Services LLC will exit the company by selling the entire shareholding of 30 lakh shares, 10 lakh shares and 10 lakh shares, respectively, in the offer-for-sale.
  • Gandhar Oil Refinery India Share Price Band

The Gandhar Oil Refinery has fixed the price band at Rs 160 to Rs 169 per share. 

  • Lot Size

For Gandhar Oil Refinery IPO, the investors can bid for a minimum of 88 equity shares and in multiples of 88 post that.

Therefore, the minimum investment by retail investors would be Rs 14,080 [88 (Lot size) x 160 (lower price band)]. Note at the upper end, the bidding amount will increase to Rs 14,872.

  • Company Financials

As per the company’s statements, Gandhar Oil Refinery reported a growth of 15.13% in revenue to Rs 4,079.4 crore in FY23 from Rs 3,543.3 crore in FY22. Also, the profit after tax rose 30.3 % to Rs 213.17 crore from Rs 163.58 crore during the same period.  

Here are the key highlights of the company financials:

  • For the last three fiscals, the company reported a total income/net profit of Rs 2242.59 crore / Rs 100.32 crore (FY21), Rs 3568.96 crore / Rs 163.58 crore (FY22), and Rs 4101.79 crore / Rs 213.18 crore (FY23).
     
  • For Q1 of FY24 (which ended on June 30, 2023), the company earned a net profit of Rs 54.28 crore on a total income of Rs 1071.52 crore.

  • The company reported an average EPS of Rs 20.11 for the last three fiscal years.

  • The Profit After Tax (PAT) margins are 4.47% (FY21), 4.58% (FY22), 5.20% (FY23), and 5.07% (Q1-FY24).

How to Apply for Gandhar Oil Refinery IPO on Groww

Here’s the process to understand how to apply for Gandhar Oil Refinery IPO online on Groww-

Step 1:  The Groww app users can go to the ‘Stocks’ tab, scroll down to view the list of live IPOs and then select ‘Gandhar Oil Refinery IPO’. Alternatively, you can also apply through Groww's IPO Page.

Step 2: After selecting Gandhar Oil Refinery IPO, you can see all the key details related to the IPO, such as total issue size, face value, price band, etc. You can also read the Red Herring Prospectus (RHP) for detailed information. To proceed further, click on ‘Apply’.

Step 3:  One can see the minimum number of shares in the pre-filled field of the order card. Enter the number of shares you want to buy and click ‘Continue’.

Step 4: As a next step, you will have to verify the bids and click on ‘Submit Bid‘.

Step 5: After confirming, the highest bid amount will be blocked in your account and cannot be used for withdrawal. Please note that this amount will get unblocked if you do not receive the allotment.

You can also check the Gandhar Oil Refinery IPO application status on your Groww account. Note that any modifications/cancellations against your order will only be possible till the time the IPO is open.

The Bottom Line

The Gandhar Oil Refinery has been one of the market leaders for years and is now all set to go public. You can apply for this IPO if it meets your financial goals. Also, make sure to check the company's financials, objectives, risks, and benefits associated before you make an application.

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here
Research Analyst - Aakash Baid

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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