Gandhar Oil Refinery (India) Limited has filed preliminary documents with markets regulator Sebi to raise funds through an initial public offering (IPO).

According to the draft Red Herring Prospectus (DRHP), the IPO consists of new share capital worth Rs 357 crore and an offer for sale (OFS) of 12 crores from promoters and existing shareholders.

The OFS shares to be issued include promoters Kailash Parekh, Ramesh Babulal Parekh, Gulab Parekh and other shareholders, Fleet Line Shipping Services LLC, Denver Bldg Mat & Décor TR LLC, IDFC First Bank Limited, and Green Desert Real Estate Brokers.

Proceeds from the new issue will repay debt and purchase equipment and civil works needed to expand the motor oil production capacity at the Silvassa plant.

Additionally, the funds will be used to expand the capacity of the petroleum jelly and complementary cosmetics divisions at the company’s Taloja plant and white oil capacity by installing blending tanks to meet working capital requirements.

Gandhar Oil Refinery is a leading white oil manufacturer with an increasing focus on consumer and healthcare end-use industries.

As of June 30, 2022, the company’s product portfolio included more than 350 products, primarily in personal care, health and performance oils, lubricants, and craft and insulating oils under the Divyol brand name.

Edelweiss Financial Services and ICICI Securities were appointed merchant bankers to manage the company’s IPO.