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Gandhar Oil Refinery Ltd

Price Range (₹)

Rs. 160 –Rs. 169

Issue Size (₹ in Cr.)

Up to 500.69 Cr

Minimum Quantity

88 Shares

Bidding Period

Nov 22 – Nov 24, 2023

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About the Gandhar Oil Refinery Ltd

- A leading manufacturer of white oils by revenue with a growing focus on the consumer and healthcare end-industries (Source: CRISIL Report)

- As of June 30, 2022, their product suite comprised over 350 products primarily across the personal care, healthcare and performance oils (“PHPO”), lubricants and process and insulating oils (“PIO”) divisions under the “Divyol” brand

Strengths

Extensive and diversified customer base
The company has catered to an extensive customer base of 3,529 Indian and global companies during the Financial Year 2022. Their customers in the PHPO division include P&G, Unilever, Marico, Emami, Bajaj Consumer Care, Encube, Patanjali Ayurved, Dabur, Amrutanjan Healthcare, Supreme Petrochem and other leading Indian manufacturers of pharmaceutical products (Source: Company DRHP)

Strategically located manufacturing facilities and in-house R&D capabilities
The company currently operate three manufacturing facilities, with two plants located in Western India and one plant located in Sharjah, UAE, spread across 1,28,454 square meters to cater to Indian and global operations. They have an R&D facility located at Silvassa manufacturing facility.(Source: Company DRHP)

Resilient, flexible and scalable business model with prudent risk management framework
The company has three decades of experience in the specialty oils industry. They focus on minimizing price risk and foreign exchange risk, efficient inventory management and prudent capital, credit and liquidity management. (Source: Company DRHP)

Risks

Exposed to counterparty credit risk and any delay in, or non-receipt of, payments may adversely affect cash flows

They are exposed to counterparty credit risk in the usual course of business due to the nature of, and the inherent risks involved in, dealings, agreements and arrangements with counterparties who may delay or fail to make payments or perform their other contractual obligations. (Source: Company DRHP)

They have had negative operating cash flows in the past and may have negative operating cash flows in the future.

The Company has incurred negative cash flows from operating activities in the quarter ended June 30, 2022 aggregating to ₹1,058.08 million, primarily due to an increase in working capital requirements. Their ability to generate cash flows is subject to general economic, financial, competitive, industry, legal and other factors, and conditions, many of which are outside their control (Source: Company DRHP)

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    Fill in the quantity of the number of shares you want to buy. To apply at maximum price, check the cut-off price box and amount is auto calculated. If you want to apply at some other price within the price band, then you can enter the price manually by clicking on “Add bid” option.

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    Click on proceed to confirm the order. You can view the placed order under “order book”.

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  • lock-in of 3 years
    Select IPO

    Choose the IPO you want to apply from the list. Click on Apply.

  • lock-in of 3 years
    Fill in the required details

    Fill in the quantity of shares. To apply at maximum price, check the cut-off price box and amount is auto calculated. If you want to apply at some other price within the price band, then you can enter the price manually by clicking on “Add bid” option.

  • lock-in of 3 years
    Confirm your request

    Check the A/C, UPI details and click on proceed. You will get an UPI link by which payment can be made.

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Disclaimer – I ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 6807 7100. I-Sec is acting as a distributor to solicit bond related products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.