Gandhar Oil Refinery India Limited

About  Gandhar Oil Refinery India Limited

Incorporated in 1992, Gandhar Oil Refinery (India) is India’s largest manufacturer of white oils as of FY22. Its portfolio comprises over 350 products, including PHPOs (Personal care, Healthcare and Performance Oils), PIOs (Process and Insulating Oils) and lubricants. These products are used as ingredients to manufacture end products for the consumer, healthcare, automotive, industrial, power, tyre and rubber sectors. 

The company procures its base oil from SK Lubricants, S-Oil, GS Caltex, and other Indian and global base oil suppliers and oil refining companies. The products are then manufactured in three manufacturing facilities in Maharashtra, Silvassa and the UAE, all of which are ISO-certified.

It caters to global as well as Indian customers and served more than 3,500 customers in FY22, including Procter & Gamble (P&G), Unilever, Marico, Dabur, Encube, Patanjali Ayurved, Bajaj Consumer Care, Emami and Amrutanjan Healthcare. As of 30 June 2023, the company's products were sold in more than 100 countries. 

The company saw a CAGR rise of over 22% in its revenue from operations and 26% in its profit between FY21 and FY23. Moreover, white oil is the fastest-growing segment of the Indian specialty oil market, and is estimated to grow at a CAGR of 9.8% between FY22 and FY27. All this could be beneficial for the company. 

And now, Gandhar Oil Refinery (India) Limited is coming out with its initial public offer (IPO). The IPO will be an offer for sale as well as a fresh issue. The money raised through the fresh issue will be utilised for investment in Texol for repayment/pre-payment of borrowings, fund capital expenditure for plant expansion and working capital requirements, and for general corporate purposes. Its shares will be listed on the NSE and the BSE.

Here are key details about the Gandhar Oil Refinery India Limited IPO:

Financial snapshot

Here’s a quick look at Gandhar Oil Refinery India Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)

Strengths and opportunities

1. India’s largest manufacturer of white oils in terms of revenue in FY23.
2. The company has an extensive and diversified customer base, including Gulf Oil, Adani Ports and Special Economic Zone for lubricants and Toshiba Transmission and Distribution Systems (India) for its PIO division. 
3. Strategically located manufacturing facilities such as the Taloja Plant, which is in close proximity to the Mumbai port and the JNPT port.
4. In-house R&D facility located at the Silvassa manufacturing facility.
5. Scalable business model as the company started operations in 1993, set up the Silvassa Plant in 2000, and set up Texol, now a subsidiary, in 2017. 
6. Diversified customer base as its top 20 customers accounted for 28% of pro forma consolidated revenue from finished goods sold in FY23.

Risks and threats

1. It depends significantly on its PHPO division as it accounted for 53% of its pro forma consolidated revenue from finished goods sold in FY22.
2. Subject to strict quality requirements, standards and inspections.
3. Exposed to the risk of price fluctuations and supply of crude oil as its raw material is a by-product of crude oil, which it sources from suppliers in South Korea and the Gulf Co-operation Council region (GCC Region). 
4. Exposed to counterparty credit risk as its outstanding trade receivables accounted for ₹441 crore in FY22.
5. Exposed to the risk associated with exchange rate fluctuations, as 39% of its revenue from operations was undertaken in foreign currencies in FY22.
6. Operates a capital-intensive business. 
7. Incurred negative operating cash flows of ₹105 crore in the quarter ended 30 June 2022.
8. Faces competition from both domestic and international markets.

Gandhar Oil Refinery India Limited IPO details

|Gandhar Oil Refinery India Limited IPO date

According to the offer document filed by the company with the SEBI, the Gandhar Oil Refinery (India) IPO’s opening date – in other words, the Gandhar Oil Refinery (India) IPO launch date – will be 21st November 2023. The Gandhar Oil Refinery (India) IPO closing date is 23rd November 2023. After this, investors will be updated about the allotment status on 29th November 2023.

Investors, who have been allotted shares, can expect them to be credited to their demat account on 1st December 2023. The Gandhar Oil Refinery (India) IPO listing date is 4th December 2023. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. 

|Gandhar Oil Refinery India Limited IPO Price Band

The IPO is an offer for sale as well as a fresh issue. The Gandhar Oil Refinery (India) IPO price band has been set between ₹160 and ₹169 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Gandhar Oil Refinery (India) IPO listing price will be determined on 4th December 2023. The listing price is the price at which a company’s shares debut on the stock exchanges.

|Gandhar Oil Refinery India Limited IPO size

The Gandhar Oil Refinery (India) IPO details have been declared. The Gandhar Oil Refinery (India) IPO lot size is set at shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Gandhar Oil Refinery (India) IPO issue size is approx ₹500 crore.

How to pre-apply for the Gandhar Oil Refinery India Limited IPO?

You can pre-apply for the Gandhar Oil Refinery India Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. 

Follow these steps to pre-apply for the IPO: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Gandhar Oil Refinery India Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Pre-Apply’
7. Accept the mandate on your UPI app

How to apply for the Gandhar Oil Refinery India Limited IPO?

If you are interested in this investment opportunity but unsure how to apply for the Gandhar Oil Refinery India Limited IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Gandhar Oil Refinery India Limited IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Gandhar Oil Refinery India Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Gandhar Oil Refinery India Limited IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Gandhar Oil Refinery India Limited IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your Gandhar Oil Refinery India Limited IPO allotment status will be mentioned

Check Allotment Status

Open a demat account with Upstox to apply for the Gandhar Oil Refinery India Limited IPO

To apply for the Gandhar Oil Refinery India Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Open Demat Account

Upstox – trading app to apply for the Gandhar Oil Refinery India Limited IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.

You can apply for the Gandhar Oil Refinery India Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.