Indian Oil Corporation Ltd. (IOC) has withdrawn the proposed rights issue of up to Rs 22,000 crore. The board of the company had approved raising of capital by way of issue of equity shares on right basis on July 7, 2023, subject to statutory approvals.
The company in an exchange filing said, " in view of the Govt. of India’s (Promoters) non-participation in the Right Issue, the Board at its meeting held on 30.09.2024 has decided to withdraw the proposed Right Issue of equity shares."
Ministry of Petroleum and Natural Gas said that in the union budget 2024-25 no funds were allocated for capital support to Oil Marketing Companies (OMCs) as against the proposed allocation of Rs 30,000 crore. As of the June quarter, the government owned 51.5 percent of Indian Oil Corporation.
Earlier, state-owned Bharat Petroleum Corporation Ltd (BPCL) board also approved raising Rs 18,000 crore through the rights issue in June 2023.
In Monday's trade, shares of Indian Oil Corporation share price settled at Rs 179.69 per share on the NSE, down 0.18 percent. The stock went up by nearly 40 percent in 2024 so far.
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