Gandhar Oil shares rise over 4% on bagging order worth ₹375 crore from UAE

In a filing to the stock exchanges, Gandhar Oil Refinery said that its subsidiary received an order from the Abu Dhabi National Oil Company.

Texol Lubritech FZC, a subsidiary of Gandhar Oil, has received an order worth ₹375 crore from Abu Dhabi National Oil Company (ADNOC). Under the terms of the contract Texol Lubritech will manufacture, package, label and make the products available for distribution on a contract basis for ADNOC, Gandhar Oil informed the stock exchanges in a filing on July 1.

The time period of the contract is three years and the projected average annual volume is 3 crore litres per year for the period between 2024 and 2026. The estimated value of the contract is $45 million (approximately ₹375 crore).

Last week, Gandhar Oil Refinery received an order proposing to impose a penalty ₹1.2 crore along with a redemption fine of ₹6 crore from the Office of the Commissioner of Customs (Adjudication), Mumbai. The Customs Department order demanded an Integrated Goods and Services Tax (IGST) of ₹30.44 crore along with an interest amount of ₹18.08 crore, which has already been paid by the oil refinery company, according to an official release.

The company mentioned in the release that it has already paid the IGST amount and the interest amount and is in the process of filing an appropriate appeal against the order within the prescribed timelines before the relevant Adjudicating Authority.

Gandhar Oil Refinery was established in 1992 in Mumbai. The company is a leading manufacturer of white oils. It produces pharmaceutical, health care, and performance oil (PHPO), process insulating oil (PIO) and lubricants (automotive oils and industrial oils). The company caters to customers across over 100 countries globally.

Gandhar Oil Refinery shares closed 1.95% higher at ₹221 apiece on the NSE.