Gokul Refoils & Solvent IPO opens May 8th

Gokul Refoils And Solvent IPO will hit the markets on May 8th, with an public offer of over 71.5 lakh equity shares of Rs. 10 each to be issued at a price band of Rs. 175 to Rs. 195. Gokul Refoils IPO will open for subscription on May 08, 2008 and the issue closes for subscription on May 13, 2008.

About the Company

Gokul Refoils And Solvent Limited, a Gujarat based company, engaged in the business of solvent extraction, refining of Edible oils and Vanaspati manufacturing. The company markets its products under the brand name “Gokul” in the states of Gujarat, Maharashtra, Rajasthan, Delhi, Haryana, J&K, Himachal Pradesh, Uttar Pradesh, Maharashtra, Bihar, Jharkhand, Chhattisgarh, Sikkim and Punjab. The brand has also been marketed in parts of Uttaranchal, Assam, West Bengal and Tamil Nadu.

The brand enjoys a national recognition and the products that are packed and sold include Mustard oil, Sunflower oil, Groundnut oil, Cottonseed oil, Palmolein oil, Vanaspati oil and Soya Bean oil these are not only sold in bulk quantities but also consumer retail packs of 15 Kgs, 15 Litre, 10 Litre, 5 Litre, 1 Litre and 500 ml. Pan India distribution network spread across 19 States catered by 18 C&F agents and 802 distributors, 3 depots, 15 brokers and 295 resellers, distributing Gokul products through a total 1133 bulk points.

Financials of the company:

Gokul Refoils and Solvent Limited consolidated total income for the financial years ended March 31, 2007 stood at Rs. 1599.86 crore and Rs.1347.82 crore for the period ended November, 2007. Profit after tax (PAT) for the FY07 was Rs. 25.73 crore, and Rs.41.83 crore for the period ended Nov 30, 2007.

Company’s standalone sales has grown at a CAGR of 39.30% over the last 5 financial years and its standalone PAT has increased at a CAGR of 41.16% over the last 5 financial years and EPS reported a growth of 24 % in last 3 years.

Purpose of the Gokul Refoils IPO

The company plans to used the proceeds raised from the issue , To set up a new 1500 TPD Soyabean processing plant near Gandhidham, Expansion of its existing edible oil refinery at Surat from 100 TPD to 400TPD ,Investment in its wholly owned Singapore subsidiary and Investment in increasing warehousing capacities and continuous Capex for existing units.

Gokul Refoils & Solvent IPO Grading

ICRA has assigned an ICRA IPO Grade “3/5″ (pronounced “three on five”) to the proposed initial public offering of Gokul Refoils and Solvent Limited which indicates average fundamentals.

The Book Running Lead Managers to the Gokul Refoils IPO are Anand Rathi Financial Services Limited and Intensive Fiscal Services Private Limited.

For information and updates on the Gokul Refoils & Solvent IPO Subscription details and Gokul Refoils IPO Review do check back later.