The stock was frozen at the upper limit of the circuit filter throughout the week, after the Union Heavy Industries Minister Vilasrao Deshmukh announced that the government was considering a stake sale in the loss-making Tide Water Oil Co, in which the company holds 26.2 per cent shares.
The stock gained 27 per cent to close at Rs 56.30 as the Kolkata-based public sector undertaking also decided to divest its stakes in Phoenix Yule and DPSC. The company has appointed SBI Caps as merchant banker for its stake sale in Tide Water Oil, the makers of Veedol, which is currently trading at Rs 4,144.20 a share with total market capitalisation of Rs 361 crore on BSE.
The company will divest its 7.12 per cent stake in DPSC, current trading at Rs 452.45 on NSE, having a total market capitalisation of Rs 191 crore on June 26. Andrew Yule’s two associate companies — Bengal Coal (4.71 per cent) and Katras Jehrriah Coal (3.38 per cent)—jointly hold 8.09 per cent stake in DPSC, which will also be divested.
