Gandhar Oil Refinery Raises Rs 150 Crore from Anchor Investors

Gandhar Oil Refinery India Ltd, a leading manufacturer of white oils with a growing focus on the consumer and healthcare end industries, has raised a little over Rs 150 crore from anchor investors a day before its initial share-sale offering.

Allotment of Equity Shares

According to a circular uploaded on the BSE's website, the company has allotted 88.88 lakh equity shares to 16 funds at Rs 169 per piece. At this price, the firm raised Rs 150.20 crore.

Participation of Renowned Investors

The anchor book saw the participation of several renowned investors, including Morgan Stanley Asia Singapore Pte, Copthall Mauritius Investment Ltd, Societe Generale, SBI General Insurance Company, Aditya Birla Sun Life Insurance Company, ICICI Prudential Mutual Fund MF, HDFC MF, and WhiteOak MF.

Details of the IPO

The IPO comprises a fresh issue of equity shares worth Rs 302 crore and an Offer for Sale (OFS) of 1.17 crore shares by promoters and existing shareholders. Those offering shares in the OFS include promoters - Ramesh Babulal Parekh, Kailash Parekh, and Gulab Parekh - and other shareholders, Fleet Line Shipping Services LLC, Denver Bldg Mat & Décor TR LLC, and Green Desert Real Estate Brokers.

The maiden public issue, with a price band of Rs 160-169 per share, will open for subscription on November 22 and end on November 24. The company will fetch up to Rs 500.69 crore at the upper end of the price band.

Utilization of Proceeds

The proceeds from the fresh issue component will be used for the payment of debt and for the purchase of equipment and civil work required for expansion in the capacity of automotive oil at the Silvassa plant. Additionally, the funds will be utilized for expansion in the capacity of petroleum jelly and accompanying cosmetic product division at the company's Taloja plant as well as expansion in the capacity of white oils by installing blending tanks at the plant and funding working capital requirements.

Book-Running Lead Managers

Nuvama Wealth Management (formerly known as Edelweiss Securities) and ICICI Securities are the book-running lead managers to the IPO.

Gandhar Oil Refinery's strong market position, experienced management team, and commitment to innovation and sustainability make it an attractive investment opportunity for discerning investors.