Tide Water selloff this fiscal, says chairman

The much-awaited divestment of 42% in lubes player Tide Water Oil Co, an Andrew Yule group company, could happen within this fiscal. The company has been delaying the exercise for at least the last one year. The 42% comprise the combined equity stake held by Andrew Yule (around 27%), United India Insurance (10%-plus) and LIC (4%).

The committee appointed by the board of directors to decide on the divestment process will have a government representative for a smooth processing of the activities. The board is slated to meet on September 24 to decide on the divestment action plan.

SBI Caps has been given the mandate to do the entire hand-holding for the divestment exercise. Kallol Datta, chairman of Tide Water Oil, said at the company’s annual general meeting in Kolkata on Monday that the divestment could happen within this fiscal.

The delay in effecting the divestment is borne out of the fact there are several private body corporates which have taken strategic positions in Tide Water Oil and the company does not want to get into any legal hassles.

With the Tide Water scrip hovering in the Rs 5,000 range, Datta said the  divestment can mop up between Rs 110-130 crore for Andrew Yule.