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Shares of Tide Water Oil (India) were trading higher for the seventh straight day and were locked in 5 per cent upper circuit at Rs 15,954 on the BSE on Thursday in an otherwise weak market. Till 02:33 pm, a combined around 4,400 shares had changed hands and there were pending buy orders for 7,600 shares on the BSE and NSE.
The stock continued its northward movement after the company announced stock split and bonus issue plan on May 26. On June 10, the company announced 1:1 bonus issue i.e. one bonus share for every share held in the company on record date. The company also declared sub-division of the face value of equity shares from Rs 5 to Rs 2. The company said the board of directors considered that the sub-division will be in the interest of the company.
Generally, a company plans to go for a stock split to make the shares more affordable for small retail investors and increase liquidity. The company has fixed July 27, 2021 as record date for ascertaining shareholders for bonus issue and stock split.
The board also recommended final dividend of 4,000 per cent (Rs 200 per share) on face value of Rs 5 per share (i.e. before sub-division of shares and bonus issue) for the financial year 2020-21. The stock will turn ex-dividend on July 19, 2021.
Tide Water Oil has a low equity base of 3.48 million shares, with promoters holding 57.28 per cent of the shares. Two state-owned companies, United India Assurance Company (6.88 per cent) and Life Insurance Corporation of India (4.22 per cent), collectively hold 11.69 per cent stake in the company. While individual shareholders have 22.36 per cent stake and others have 6.20 per cent, the March 2021 shareholding pattern data shows.
Tide Water oil has been one of the leading players in the Indian lubricant industry. It manufactures and markets Veedol brand of lubricants. Its repertoire of automotive products includes engine oils for trucks, tractors, commercial vehicles, passenger cars, and two/three wheelers.
It also produces gear oils, transmission oils, coolants, and greases for automobiles. For industrial application it manufactures industrial oils, greases, and specialty products like metal working fluids, quenching oils, and heat transfer oils. Tide Water has tie-ups, for the manufacture of genuine oils, with a number of renowned OEMs in the automotive and industrial equipment segment.
