Gulf Oil jumps on board's nod for divestment of entire stake in 3 overseas units

Gulf Oil Corporation surged 5.68% to Rs 81 at 14:57 IST on BSE after the company said it has decided to sell its entire stake in three foreign subsidiaries for an overall consideration of about Rs 54.90 crore.

The announcement was made after market hours on Monday, 30 September 2013.

Meanwhile, the S&P BSE Sensex was up 102.11 points or 0.53% at 19,481.88.

On BSE, 82,000 shares were traded in the counter as against average daily volume of 28,318 shares in the past one quarter.

The stock hit a high of Rs 82.50 and a low of Rs 76.50 so far during the day. The stock had hit a 52-week high of Rs 103.50 on 5 October 2012. The stock had hit a 52-week low of Rs 56.25 on 22 March 2013.

The stock had outformed the market over the past one month till 30 September 2013, advancing 18.38% compared with the Sensex's 4.08% rise. The scrip had also outperformed the market in the past one quarter, jumping 10.13% as against Sensex's 0.08% fall.

The small-cap company has equity capital of Rs 19.83 crore. Face value per share is Rs 2.

Gulf Oil Corporation's (GOCL) board of directors at its meeting held on Monday, 30 September 2013, approved the disinvestment of the company's three subsidiaries viz. Gulf Oil Yantai (51% holding), Gulf Oil Indonesia (75% holding) and Gulf Oil Bangladesh (51% holding). GOCL said that its board was advised by a reputed valuer on the valuation of the three subsidiaries and accordingly the decision has been taken by the board to divest the holdings in the three subsidiaries for an overall amount of around Rs 54.90 crore (cost of investment Rs 29.10 crore).

Accordingly, the steps will be taken to operationalise the disinvestment over the next 2/3 months taking into account regulatory requirements, if any in the respective countries, GOCL said in a statement.

GOCL said that this disinvestment would also help the company to focus on the lubricants business in India and grow further with the demerger of the lubricants business into a listed company viz. Gulf Oil Lubricants India (formerly Hinduja Infrastructure).

Gulf Oil Corporation's net profit declined 4.9% to Rs 9.57 crore in Q1 June 2013 over Q1 June 2012. Net sales almost remained unchanged on year-on-year basis at Rs 226.81 crore in Q1 June 2013.

Hinduja Group firm Gulf Oil Corporation makes lubricant oil for application in automotive, agricultural, industrial, construction and marine segments. The company markets its product under the Gulf brand.

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