By Prashant Marathe | EduInvesting | 23 May 2025
📌 At a Glance
Andrew Yule & Company (yes, the legacy PSU still around) had big plans to offload its stake in Veedol Corporation Ltd (formerly Tide Water Oil).
But just a day after announcing it… 💥 they pulled the offer.
| 📉 What happened? | ❗Why it matters? |
|---|---|
| Veedol OFS (Offer for Sale) was supposed to go live | Big PSU disinvestment move cancelled |
| Shares couldn’t be transferred to NSE Clearing Corp | “Technical glitches” cited — details not disclosed |
| Notice dated May 22, withdrawn on May 23 | A 24-hour turnaround — that’s fast, even for government |
🧾 The Official Lingo
In classic PSU tone, the letter said:
“Due to unavoidable circumstances… shares could not be transferred to NSE Clearing Corporation Ltd. due to some technical glitches.”
And with that, the OFS is postponed until further notice.
So… no shares are hitting the market just yet.
🧨 The Backdrop: What Was Supposed to Happen?
Andrew Yule & Co. (a 100+ year old public sector enterprise) owns a stake in Veedol Corporation Ltd, a rebranded avatar of the old Tide Water Oil Company (India).
They were set to:
- Offload part of their stake via OFS route
- Use the NSE’s Clearing Corporation mechanism
- Possibly help the government inch closer to FY26 disinvestment targets
But alas — some backend tech wires got tangled.
🛠️ What Could the “Glitch” Be?
Let’s be honest, NSE systems are built like tanks. So what could go wrong?
🤔 Likely possibilities:
- Improper demat share transfer to clearing corp
- Delays in authorization mapping
- Last-minute compliance or pricing issues
- Someone clicked “Cancel” instead of “Confirm”
Either way, it’s rare for OFS to be withdrawn after notice issuance. This makes it one of the shorter-lived PSUs sales in recent memory.
💸 How Big Was This Going to Be?
Details weren’t published about the exact quantum, but considering:
- Veedol’s market cap (~₹2,300 Cr)
- Andrew Yule’s historical holdings (~26.2% last reported)
- CMP of Veedol: ₹1,674.80
Even a 5–10% OFS could have raised ₹100–200 Cr+ for the government.
So yes — not pocket change.
📉 Market Reaction?
| 🏷️ Stock | 🎯 CMP | 📉 Move |
|---|---|---|
| Veedol Corp (formerly Tide Water Oil) | ₹1,674.80 | ⬇ -0.99% |
| Andrew Yule & Co. | ₹18.25 | ⬇ -1.34% |
Markets weren’t thrilled. Investors who hoped for increased liquidity or lower price entry in Veedol are left hanging.
🧠 EduInvesting Take
This was supposed to be a routine PSU disinvestment — instead, it turned into a Ctrl+Z moment.
🛑 OFS withdrawn within 24 hours
📦 No shares moved into the clearing house
🔧 “Technical glitch” being investigated
Key Takeaway: PSU disinvestments still face serious plumbing issues. Whether it’s software, bureaucracy, or both — India’s path to privatization remains bumpy.
🏷️ Tags:
Andrew Yule OFS Withdrawal, Veedol Corporation Ltd, Tide Water Oil OFS Cancelled, NSE Clearing Glitch, PSU Disinvestment Fail, EduInvesting, Andrew Yule Stake Sale, Tide Water Rebranding, NSE OFS Technical Issue, 2025 OFS Withdrawals
