Indian Oil and Chennai Petroleum stocks up today

24 Nov 2022 , 01:04 PM

Indian Oil Corporation and Chennai Petroleum Corporation’s shares skyrocketed after ICICI Bank announced it would buy a 10% interest in their proposed joint venture. ICICI Bank would spend Rs 50,000 to acquire a 10% interest in the target firm, which will be created with seed capital of Rs 5 lakh. 

The lender stated that other than its first capital commitment of Rs 50,000, “ICICI Bank as seed equity investor does not have any duty to support the future equity requirement of the project.”

In Tamil Nadu’s Nagapattinam, the joint venture plans to build a refinery with an annual capacity of nine million metric tonnes. Axis Bank, HDFC Life Insurance, ICICI Prudential Life Insurance, SBI Life Insurance, and Indian Oil Corporation will each own a 10 % stake. In comparison, Chennai Petroleum Corporation and Indian Oil Corporation will each hold a fifty percent stake (25 %).

Products made from petroleum will come from the refinery. Indian Oil Corporation was up 2.86 %, trading at Rs 71.90 per share on the NSE at 11:45 a.m. The price of Chennai Petroleum Corporation increased by 5% to Rs 200.70.

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