Meeting of shareholders of Gulf Oil Corporation Limited will be held on January 30 to take up and consider demerger of the lubricants undertaking of the company into its wholly-owned subsidiary Gulf Oil Lubricants Limited.
In a meeting convened by an order of the Andhra Pradesh High Court of the equity shareholders of Gulf Oil Corporation, the scheme of arrangement between Gulf Oil Corporation Limited and Gulf Oil Lubricants Limited will be considered for approval.
Gulf Oil Corporation Limited is engaged in the business of manufacture and supply of lubricants, industrial explosives, mining and infrastructure contracts and property development. The Gulf Oil Corporation has an authorised share capital of Rs 25 crore and of this, issued and subscribed capital is Rs 19.82 crore.
The company in the rationale for the scheme to demerger said that the move would be beneficial to shareholders and other stakeholders. Shareholders of Gulf Oil Corporation Limited will get one equity share of Rs 2 each for every two shares held. The liabilities and obligations will automatically get transferred to as per the arrangement.
In view of the diverse nature of the company business, the management is seeking to de-risk the business, restructure operations and accordingly decided to demerge lubricants division, its biggest contributor to revenue now.
All equity shares of the Lubricants company, the new entity, shall be admitted to trading on the stock exchanges where the demerged entity will be listed.
For the year ended March 31, 2013, Gulf Oil Corporation closed with revenues of Rs 945.54 crore with lubricants division contributing significantly to its revenue.
The company shares closed at Rs 97.45 on Friday down 3.51 per cent at BSE.