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16 January 2024

Gandhar Oil Refinery India IPO: A Resounding Success

Introduction:

Gandhar Oil Refinery (India) Limited recently marked a significant milestone with its Initial Public Offering (IPO), successfully raising Rs 500.69 crores through a book-built issue. The IPO comprised a fresh issue of 1.79 crore shares, amounting to Rs 302.00 crores, and an offer for sale of 1.18 crore shares, aggregating to Rs 198.69 crores.

Key Dates:

Bidding Period	November 22 to November 24, 2023
Allotment Date	November 28, 2023
Listing Date	November 30, 2023

Issue Details:

Price Band	₹160 to ₹169 per share
Lot Size	88 shares
Minimum Investment	₹14,872 for retail investors

Financial Snapshot:

Total Issue Size	Fresh Issue	Offer for Sale
29,626,732 shares, aggregating up to ₹500.69 Cr	17,869,822 shares, aggregating up to ₹302.00 Cr	11,756,910 shares, aggregating up to ₹198.69 Cr

Shareholding:

Pre-Issue	Post-Issue
80,000,000 shares	97,869,822 shares

IPO Managers and Registrar:

Lead Managers	Registrar
ICICI Securities Limited and Nuvama Wealth Management Limited.	Link Intime India Private Ltd.

IPO Subscription Status:

The Gandhar Oil Refinery India IPO received overwhelming response across categories, with a remarkable subscription of 65.63 times. Qualified Institutional Buyers (QIBs) exhibited strong interest with a subscription of 129.06 times, Non-Institutional Investors (NIIs) subscribed 64.34 times, and retail investors subscribed 29.93 times.

Gandhar Oil Refinery India IPO Timeline:

IPO Open Date	IPO Close Date	Basis of Allotment	Listing Date
November 22, 2023	November 24, 2023	November 28, 2023	November 30, 2023

Lot Size:

Investors could bid for a minimum of 88 shares, and the table below outlines the minimum and maximum investment by retail and High Net Worth Individual (HNI) investors:

Application	Lots	Shares	Amount
Retail (Min)	1	88	₹14,872
Retail (Max)	13	1144	₹193,336
S-HNI (Min)	14	1,232	₹208,208
S-HNI (Max)	67	5,896	₹996,424
B-HNI (Min)	68	5,984	₹1,011,296

Gandhar Oil Refinery India IPO Reservation:

The IPO included a reservation of 29,626,730 shares, with allocations to various categories, including Anchor Investors, QIBs, NIIs, and retail investors.

About Gandhar Oil Refinery (India) Limited:

Established in 1992, Gandhar Oil Refinery (India) Limited is a leading manufacturer of white oils catering to consumer and healthcare industries. The product suite includes over 440 products, serving personal care, healthcare, lubricants, and process and insulating oils. The company operates globally, with a clientele including renowned companies such as HUL, P&G, Marico, and Dabur.

Financial Performance:

Gandhar Oil Refinery demonstrated robust financial performance, with a 20.71% increase in revenue and a 15.67% rise in profit after tax between March 31, 2022, and June 30, 2023. Key performance indicators such as Return on Equity (ROE) and Return on Capital Employed (ROCE) showcase the company's financial strength.

Metric	Values
Revenue Increase	20.71%
Profit After Tax Rise	15.67%
ROE	32.28%
ROCE	41.19%
Debt/Equity	0.22

Objects of the Issue:

The net proceeds from the IPO will be utilized for various purposes, including investments in Texol, capital expenditure for capacity expansion, funding working capital requirements, and general corporate purposes.

Conclusion:

Gandhar Oil Refinery India IPO garnered substantial investor interest, reflecting confidence in the company's growth trajectory. With a proven track record and a well-defined strategy, Gandhar Oil Refinery is poised for success in the white oil industry. Investors seeking medium to long-term rewards may find this IPO a compelling investment opportunity.

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