IOC eyes asset monetisation via SVP route, may approach PE, VC funds: Report

Indian Oil Corporation (IOC) is looking to monetise its pipes and storage infrastructure via special purpose vehicles (SPVs) or subsidiaries, the Times of India reported.

These would then offer private equity (PE) and venture capital (VC) companies a portion of the stake in the SPVs to gain funds, sources told the paper, adding that IOC's top management and Oil Ministry officials are discussing the same.

Moneycontrol could not independently verify the report.

If implemented, IOC would likely employ the build, own, operate and transfer (BOOT) model, which it successfully undertook for its Paradip refinery tank farm facility in Odisha.

PE and VC funds would likely evince interest in IOC’s assets as they offer assured returns and a quick exit option, an executive told the paper.

The funds raised would be used to expand operations and reduce borrowings, which will in turn raise profits and shareholder dividends.