Gulf Petrochem Group has struck a deal to buy 75 per cent stake held by promoters of public listed Sah Petroleums for Rs 60 crore ($10 million) and has made an open offer for buying the public shareholders which may cost up to Rs 20.02 crore ($3.3 million) if its fully accepted, as per a stock market disclosure.
Privately held Gulf Petroleum, which was started as a petrochemicals trading house by brothers Ashok Goel and Sudhir Goyel two decades ago and latter moved into refining and allied businesses, has made an open offer to acquire the remaining shares at Rs 15.7 each aggregating.
Sah Petroleums’ scrip shot up 5 per cent to hit the upper circuit for the day at Rs 15.96 a share on BSE in a flat Mumbai market on Wednesday. The share price of the firm has more than doubled in the last three months alone.
The company is promoted by the Sah family, who are exiting through the deal with Gulf Petrochem.
Sah Petroleums has been specialising in designing, manufacturing and marketing, industrial & automotive lubricants, process oils, transformer oils, greases and other specialties under the brand name IPOL in India and overseas for more than three decades.
The firm has been facing pressure to grow the business with its top-line declining for the last two years from a high of Rs 480 crore for the year ended March 31, 2012 to Rs 403.6 crore last financial year. It clocked net profit of Rs 1 crore in FY14.
(Edited by Joby Puthuparampil Johnson)
