HINDUSTAN ORGANIC CHEMICALS LTD. (HOCL)
Hindustan Organic Chemicals Ltd. (HOCL) was incorporated on December 12, 1960 as wholly owned enterprise of Government of India. It has two manufacturing units, namely, phenol complex at Cochin and an integrated Nitro Aromatic Complex at Rasayani. The paid up capital of this company is Rs. 67.27 crores, of which Government of India currently holds 58.61% of the equity. Financial institutions and the general public respectively hold 10% and 25.2% of the equity while Mutual Funds, NRIs, employees and body corporate hold the rest. The company produces a wide range of products including phenol, acetone, aniline and others. It has continuously paid dividend for over 20 years till 1997-98. Due to reduced protection from imports, poor market condition and excessive manpower and interest cost, the company had been reporting losses since 1997-98.
In terms of CCD’s decision dated 27th December, 2002 approving the financial restructuring package and invitation of fresh bids, advertisement were released on 17th January, 2003 in all editions of the Economic Times, the Financial Express and the Business Standard and all the editions of the Financial Times, London inviting EOIs afresh from prospective bidders for 32.61% of HOCL’s equity. The details of the financial restructuring approved by the CCD were also made available to all the prospective bidders through the Preliminary Information Memorandum (PIM), which formed part of the advertisement inviting EOIs. The IMG short listed the bidders in its meeting held on 27.2.2003. Thereafter, the short listed bidders carried out their due diligence. The draft transaction documents were discussed with the bidders and finalized, which includes provisions on the proposals approved by Government for restructuring of HOCL.
Today, CCD approved the transaction documents and cleared the proposal for inviting final Technical/Financial Bids.