Indian Oil Corporation (IOC) will raise up to 220 billion rupees ($2.66 billion) through a rights issue of shares, the state-owned refiner said on Friday .
Last month, Reuters reported that the Indian government has begun its plan to finance the energy transition projects of three large state refiners – IOC, Bharat Petroleum Corp Ltd (, BPCL) and Hindustan Petroleum Corp Ltd (HPCL) – in exchange for equity.
IOC, the country’s top refiner, has not specified which projects the newly raised funds will target. It said it will provide more details on the rights issue, including price and timing, after the board’s approval.
Last week, BPCL had said it would raise $2.19 billion through a rights issue to help meet its “energy transformation, , net-zero and energy security objectives”.
HPCL has not yet announced any fund raising plans. Reuters had reported that the government is seeking preferential allotment of shares from HPCL.
The three refiners together aim to invest Rs 3.5-4 trillion to achieve their net zero-emission target by 2040.
Indian Oil also approved the formation of a joint venture for battery-swapping business in India as a private limited company in a 50:50 collaboration between it and Sun Mobility Pte Ltd Singapore, with IOC’s equity investment of 18 billion rupees ($217.83 million).
So far this year, Indian Oil’s share price has risen nearly 30 per cent, while HPCL’s share price has risen over 30 per cent and BPCL’s by about 18 per cent. In comparison, the benchmark Nifty 50 has gained about 7 per cent.
courtesy:-energy.economictimes
