Mumbai-based lubricant maker Standard Greases and Specialties, along with PE funds managed by Tata Capital, has launched an open offer to buy up to 26 per cent equity stake in Andrew Yule group firm Tide Water Oil Company India Ltd, according to a stock market disclosure.
Standard Greases and others will acquire 226,512 equity shares, representing about 26 per cent equity stake in Tide Water Oil at a share price of Rs 16,632 a piece, which will value the transaction at around Rs 376 crore (about $57 million), if fully subscribed.
The offer price is below the market price of Tide Water Oil’s Tuesday close of Rs 17,046 apiece on the Bombay Stock Exchange. The company’s share price shot up 3.46 per cent to close at Rs 17,636 each on BSE in a strong Mumbai market on Wednesday.
Standard Greases said it is a voluntary offer as it seeks to increase stake in the company and become a promoter.
As of June 30, 2015, Standard Greases and its associated firms together owned 24.93 per cent of Tide Water Oil’s voting share capital, according to data available with the stock exchanges.
Andrew Yule holds 26.22 per cent in Tide Water Oil and is currently its promoter.
Founded in 1992, Kolkata-based Tide Water Oil manufactures automotive and industrial lubricants. Its products include engine oils for trucks, tractors, commercial vehicles, passenger cars and two/three wheelers.
Standard Greases manufactures and processes greases and lubricating oils. Last year, Tata Capital-managed private equity funds had invested Rs 120 crore (around $20 million then) to pick a 17.36 per cent stake in the Mumbai-based firm.
The PE firm invested through Tata Capital Growth I and Singapore-based Alpha TC Holdings, a fund backed by Mizuho Securities and managed by Tata Capital.
SBI Capital is managing the open offer for Tide Water Oil.