Indian Oil Stock Surges on Rs 22,000 Crore Fundraising Plan
Indian Oil Corporation Limited (IOCL) witnessed a significant surge in its stock value following the announcement of a plan to raise Rs 22,000 crore through a rights issue.
In a rights share issue, existing shareholders of the company are granted the opportunity to purchase additional shares directly from IOCL at a discounted price, bypassing the secondary market.
Moreover, IOCL revealed its intention to establish a 50:50 joint venture with Sun Mobility Singapore for a battery swapping business in India. Over the course of FY26-27, IOCL plans to invest Rs 1,800 crore in Sun Mobility Singapore. The board of IOCL has also sanctioned an investment of $78.31 million in IOCL Singapore, a wholly-owned subsidiary, for the acquisition of preference shares and warrants of Sun Mobility Singapore.
Furthermore, on June 6, IOCL signed a term sheet aimed at bolstering biofuels production in India. This Memorandum of Understanding (MoU) encompasses various biofuels such as Sustainable Aviation Fuel, Ethanol, Compressed Bio-Gas, Biodiesel, and Bio-bitumen.
In FY23, IOCL witnessed a remarkable 42 percent increase in revenue, amounting to Rs 8,45,954 crore compared to the previous year. The net profit also experienced a year-on-year growth of 16 percent, reaching Rs 25,102 crore. However, the EBITDA margins recorded a decline of 445 basis points in the same period.
About Indian Oil:
The Indian Oil Corporation Limited is an Indian oil and gas company that operates under the ownership of the Ministry of Petroleum and Natural Gas, which is part of the Government of India. Its headquarters are located in New Delhi. As a public sector undertaking, its operations are supervised by the Ministry of Petroleum and Natural Gas.
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