Chennai Petroleum approves JV to execute 9MMTPA refinery project worth Rs31,580 crore; stock spurts ~4%

24 Aug 2022 , 09:26 AM

Chennai Petroleum Corporation Limited’s board of directors has considered and approved the proposal for the formation of a Joint Venture company.

The said JV is to be formed between Chennai Petroleum Corporation, Indian Oil Petroleum Corporation, and other seed equity investors namely, HDFC Life Insurance company, ICICI Bank, SBI Life Insurance Company Limited, Axis Bank, and ICICI Prudential Life Insurance.

The purpose of this Joint Venture is to implement the 9 MMTPA Refinery Project at Cauvery Basin Refinery, Nagapattinam District.

As per the company, the estimated cost of the project is ~Rs31,580 crore (+/- 10% accuracy).

The meeting was held on August 22, 2022.

Further, in the same meeting, the Board of Directors of CPCL also extended approval for an Equity investment of ~Rs2,570 crore by the company in the Joint Venture.

CPCL’s contribution to the Joint Venture will be 25%.

Chennai Petroleum Corporation was trading at Rs317.90 up by 3.91% from its previous closing of Rs305.95 on the BSE. The scrip opened at Rs319.20 and touched intraday high and low of Rs327.20 and Rs315.95 respectively.