Petroleum products supplier Gandhar Oil Refinery has announced a plan to conduct an initial public stock offering in which it would aim to raise Rs 357 crores.
In a Dec. 23 filing with the Securities and Exchange Board of India, Gandhar said it will use the funds to expand capacity of its automotive lubricant factory in Silvassa, India, and capacity of its white oil refinery in Taloja.
Gandhar already claims to be the largest white oil supplier in India and one of the five largest in the world. Its white oils accounted for 53% of the company’s revenue for its 2022 financial year and are sold primarily into cosmetics and healthcare products. Its finished lubricant business, which supplies products for automotive and industrial applications, accounted for 27% of revenue during the same year.
The company also supplies electrical transformer fluids and petroleum jellies.
The fundraising target specified in last month’s filing converts to U.S. $44 million at today’s exchange rates. The company said it would use Rs 27.7 crore to expand the Silvassa lubricant plant, including engineering designs and purchase and installation of equipment.
The company, which is based in Mumbai, is one of several in India that purchase mineral base oils and further refine them into white oils and related products.
The prospectus paints a bullish outlook for white oils, stating that it is one of the fastest growing categories of petroleum products. Gandhar makes about half of its revenue in India and about half in foreign markets but said that its growth strategy will focus overseas.