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

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The IPO comprises fresh issue of equity shares worth Rs 357 crore and an offer for sale (OFS) of 1.2 crore by promoters and existing shareholders, according to the draf red herring prospectus (DRHP).

Fund raising through the OFS component is expected to be Rs 500 crore, market sources said.

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Those offering shares in the OFS include promoters Ramesh Babulal Parekh, Kailash Parekh and Gulab Parekh and other shareholders, Fleet Line Shipping Services LLC, IDFC First Bank Limited, Denver Bldg Mat & D?cor TR LLC and Green Desert Real Estate Brokers.

Proceeds from the fresh issue component will be used for payment of debt and for purchase of equipment and civil work required for expansion in capacity of automotive oil at Silvassa plant.

In addition, funds will be utilised for expansion in capacity of petroleum jelly and accompanying cosmetic product division at the company's Taloja plant as well expansion in capacity of white oils by installing blending tanks at the plant and funding working capital requirements.

Gandhar Oil Refinery is a leading manufacturer of white oils with a growing focus on the consumer and healthcare end-industries.

As of June 30, 2022, the company's 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.

Edelweiss Financial Services and ICICI Securities have been appointed merchant bankers to manage the company's IPO.

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