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This oil & marketing distribution firms stock has zoomed 133% in 15 days – Business Standard

Shares of continued their northward movement, surging 10 per cent on Thursday to hit a new high of Rs 10,449 on the BSE on Tuesday. The stock has rallied 74 per cent in the past four trading days after the company — engaged in oil & marketing distribution business — said it will consider a stock split and bonus issue in the forthcoming board meeting to be held on June 10, 2021.

With the past four days’ surge, the market price of has more-than-doubled (up 133 per cent) in the past 15 days from the level of Rs 4,490.70 on May 10. In comparison, the S&P BSE Sensex was up 5 per cent during the same period.

On significant movement in the price of the equity shares of the Company, Tide Water Oil said that it may be understood that the prevailing trading price and traded volume are market driven and independent.

In an exchange filing post market hours, on May 16, Tide Water Oil said that “the board of directors of the company is scheduled to meet June 10, 2021 to consider the audited financial results of the company for the quarter and year ended 31st March, 2021 and will also consider recommendation of final dividend for the financial year 2020-21 and book closure for the purpose.”

In the said meeting, the board of directors will also consider a proposal of subdivision of shares and declaration of bonus issue to/for the shareholders at such rate/ratio to be decided therein, Tide Water Oil said.

Generally, a company plans to go for a stock split to make the shares more affordable for small retail investors and increase liquidity.

Earlier in March 2016, the company had issued bonus shares in the ratio of 1:1 i.e. one bonus share for every share held in the company. The oil marketing & distribution company had also sub-divided face value of equity shares from Rs 10 to Rs 5.

Tide Water oil has been one of the leading players in the Indian lubricant industry since 1928. It manufactures and Veedol brand of lubricants. Its repertoire of automotive products includes engine oils for trucks, tractors, commercial vehicles, passenger cars, and two/three wheelers. It also produces gear oils, transmission oils, coolants, and greases for automobiles. For industrial application it manufactures industrial oils, greases, and specialty products like metal working fluids, quenching oils, and heat transfer oils. Tide Water has tie-ups, for the manufacture of genuine oils, with a number of renowned OEMs in the automotive and industrial equipment segment.

Tide Water Oil has outstanding equity shares of 3.84 million with face value of Rs 5 per share. As on March 31, 2021, the promoters including Andrew Yule & Co (26.23 per cent) and Standard Greases & Specialities Private Limited (29.35 per cent) have collectively held 57.28 per cent stake in the company. Life Insurance Corporation of India (LIC) and United India Assurance held 4.22 per cent and 6.88 per cent holding, respectively. While, individual shareholders held 22.36 per cent stake and remaining with the others, the shareholding pattern data shows.

At 12:50 pm, the stock was quoting 8 per cent higher at Rs 10,247 on the BSE, against 0.05 per cent rise in the S&P BSE Sensex. A combined around 79,000 equity shares have changed hands on the NSE and BSE, so far.

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