In just 7 sessions this oil marketing company's share price has doubled
In five out of seven trading sessions, shares of the company were locked in the upper circuit
Shares of Tide Water Oil company are on a tear. In the last seven trading sessions the scrip has more than doubled to Rs 11,532 on June 2 from Rs 5,533 on May 25. In five out of seven trading sessions, shares of the company were locked in the upper circuit.
On May 26, the company informed the stock exchanges that it will consider a stock split and bonus issue in the forthcoming board meeting to be held on June 10, 2021, which triggered the rally. In the same meeting and the board will also consider the recommendation of the final dividend for the financial year 2020-21.
The rally was backed by heavy volumes, about three times higher during the last five days compared to the one-month average. Similarly, the five-day deliverable volumes were also up 2.9 times compared to the one-month average.
On significant price movement, BSE asked for explanations, to which the company said, “that it may be understood that the prevailing trading price and traded volume are market-driven and independent.”
Tide Water Oil Company may be unfamiliar to many. The company manufactures and markets Veedol brand of lubricants. Tide Water has tie-ups to manufacture genuine oils with a number of renowned OEMs in the automotive and industrial equipment segment.
In March 2016, the company had issued bonus shares in the ratio of 1:1 which means it issued one bonus share for every share held in the company. It also reduced the face value of the share or split the equity shares from Rs 10 to Rs 5.
In today’s trade also the scrip was locked in the upper circuit of 10% on the NSE at Rs 11,532.95 apiece with a total bid quantity of 10,020 shares and zero shares on offer.