State-owned Andew Yule & Company re-attempts OFS for Veedol

Also Read - State-run Andrew Yule cited ‘glitch’, but it likely found after announcing Veedol OFS that its demat account was suspended

Andrew Yule & Company had plan to sell around 2 percent or 3.48 lakh shares of the Veedol through OFS but on 23 May, but the company informed that due to ‘some technical glitches’ the notice of offer for sale of shares of Veedol Corporation had to be withdrawn.

Moneycontrol had learnt that in reality, seller Andrew Yule & Company’s demat account had been suspended over compliance-related issues. And this was not checked by the seller before planning for the OFS.

Normally before planning any such sale, the broker is communicated in advance and all details are checked and re-confirmed. Andrew Yule & company didn't respond to Moneycontrol's query on seeking exact reasons for the cancellation of OFS.

Usually trading accounts get deactivated if transactions have not been undertaken and an account is inactive for a long time. Sometimes KYC-related issues also lead to trading accounts becoming inactive. At times, transactions also do not go through if a 'freeze request' has been made and the investor forgets to request a de-freeze of the trading account.

Sellers in OFS are allowed to withdraw the sale at any time before opening of the offer, but with a cooling period of 10 trading days from the date of withdrawal of OFS. Also, OFS can be cancelled in case sufficient number of buyers are not found. However, it was a rare occurrence that a company had to cancel its OFS because the trading account was suspended.
Andrew Yule & Company is classified as one of the promoters of Veedol and holds 26.23 percent stake in the company. Other significant promoter shareholder is Standard Greases and Specialities Pvt Ltd with a 36.36 percent stake in it.