IOCL mulls raising Rs 22,000 crore via rights issue

10 Jul 2023 , 10:50 AM

Indian Oil Corporation Limited said that the company is planning to raise Rs 22,000 crore through a rights issue. The company’s board of directors has approved the fund raising plan.

‘The company will raise capital by issuing equity shares on a right basis up to a maximum of Rs 22,000 crore, subject to receipt of any necessary statutory approvals,’ the company said in a filing.

The issue price, issue open date, record date, issue closure dates, right entitlement, terms of payment, and other details of the rights issue will be made public in due course, said the company.

Further, the board of directors also approved the creation of a joint venture company for carrying out battery swapping business in India. In the said company, Indian Oil will hold 50% ownership while, the other 50% will be held by Sun Mobility Pte. Ltd. Singapore.

In the JV, IOCL will infuse Rs 1,800 crore till the financial year 2026-27.

Further, the Board also approved a $78.31 million investment in IOCL Singapore Pte. Ltd., Singapore (a Wholly Owned Subsidiary of Indian Oil) for the acquisition of SMS preference shares and warrants.

The company said that these investments are yet to receive necessary regulatory approvals.

At around 10.45 AM, Indian Oil was trading 0.35% lower at Rs 98.85, against the previous close of Rs 99.20 on NSE.

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