By IANS,
Kolkata : Tide Water Oil Co (India) would decide on a follow-on public offer (FPO) only after the government formally confirms that the state-owned Andrew Yule & Co will not divest its 26 percent stake in the company, a top official said here Friday.
“The disinvestment of Andrew Yule’s stake in Tide Water was a cabinet decision, so the government needs to formally accept the proposal to drop it, and unless that happens, we can’t dilute the Andrew Yule’s 26.22 percent stake by going for an FPO,” Kallol Datta, chairman of both the companies, told reporters here.
Andrew Yule’s board had earlier recommended the government not to disinvest a combined stake of 42 percent held by it along with a clutch of financial institutions in its arm, Tide Water.
Tide Water Oil plans to raise money through the FPO to fund its plans for diversification, including venturing into “refining” business, Datta said after the annual general meeting of the company.
He, however, declined to divulge any details.
“What we are planning is not large-scale refining done by the oil companies but something quite different,” Datta said.
At present, the company’s lubricant making capacity is 92,500 kilolitre (kl) per annum, which would be raised to over 1 million kl by end-2011-12.
Tidewater has brands like Veedol for two-wheeler and truck tyres and Blue Blood for cars.