Mahendra K Jalan, the promoter of Keventer’s and Metro Dairy, has decided to offload his 14 per cent stake in Tide Water Oil Co Ltd (TWOL) to the highest bidder following the decision by the department of disinvestment to disallow bids from parties who stayed away from submitting expression of interest (EoI).

“I will sell my shares to the highest bidder and the price should be better than the possible reserve price,” Jalan said.

Unconfirmed reports indicated some investors who submitted EoIs have approached Jalan for a possible transfer of shares. “Mutual funds have been approaching me,” was all that Jalan was willing to say. Jalan had acquired the shares before the divestment process in the company was initiated. He had reportedly acquired the shares on behalf of a foreign petroleum player. The duo did not submit expression of interest (EoI) and decided to refrain from participating in the sell-off process because of tension at the border. Jalan’s foreign partner had reportedly asked him to refrain, which he did.

Subsequently, Jalan decided to get rid of the shares and at a premium. Jalan had brought the shares at a price ranging between Rs 900 and Rs 1,200 per share. At the expected price of Rs 3,000-plus, the shares should fetch Jalan close to Rs 37.59 crore. The scrip is trading at Rs 1,600 at the stock exchanges.

TWOL’s paid-up equity is a modest Rs 87 lakh comprising 8,71,200 equity shares of Rs 10 each. Of this, 28 per cent is held by Andrew Yule and Co, 14 per cent by financial institutions, 22 per cent by foreign company Four Star, 14 per cent by M K Jalan and 12 per cent by the public.

The Andrew Yule and FI stakes would be sold. Invitations for bids for transfer of equity and management control of the Kolkata-based lube manufacturer is likely to be initiated by October.