The company had filed its draft IPO papers last year and received approval for the same in June this year.
The offer comprises a fresh equity issue of Rs 357 crore and an offer for sale (OFS) of Rs 143 crore. The price band for the issue will be announced soon for the Rs Rs 500-crore IPO.
Under the OFS, promoter-selling shareholders Kailash Parekh, Gulab Parekh, and other selling shareholders Green Desert Real Estate and Fleet Line Shipping among others will offload stakes.
About 50% of the offer is reserved for qualified institutional buyers, 35% for retail investors and 15% for non-institutional investors.
The net proceeds from fresh issuance worth Rs 357 crore will be used towards financing the repayment/pre-payment of a loan facility, purchase of equipment and civil work, expansion in capacity of automotive oil, petroleum jelly, white oils by installing blending tanks, funding working capital requirements and general corporate purposes.
Gandhar Oil is a leading manufacturer of white oils with a growing focus on the consumer and healthcare industries. Its product suite comprised over 350 products primarily across the personal care, healthcare and performance oils, lubricants and process and insulating oils divisions under the Divyol brand.The company is India’s largest manufacturer of white oils by revenue in FY22, including domestic and overseas sales and is one of the top five players globally in terms of market share in CY21.
It operates three manufacturing facilities with a combined annual production capacity of 497,403 KL as of June 30, 2022 (enhanced to 522,403 KL in October 2022), with plants located in Taloja, Maharashtra, the Union Territory of Silvassa, Dadra and Nagar Haveli, Daman and Diu and Sharjah, United Arab Emirates.
Edelweiss Financial Services and ICICI Securities are the book-running lead managers to the issue.
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