Mumbai: Indian Oil Corporation (IOC) announced withdrawal of its proposed Rs 22,000 crore rights issue. The IOC informed the stock exchanges that its board decided to withdraw the proposed Right Issue of Equity Shares.
“Outcome of the board meeting — Withdrawal of the proposed Right Issue of Equity Shares
This is in continuation of our earlier intimation dated 07.07.2023 wherein it was informed that
the Board has accorded approval for Raising of capital by way of issue of equity shares on Right
basis up to an amount not exceeding Rs. 22,000 crore (Rupees Twenty Two Thousand crore only),
subject to receipt of necessary statutory approvals,” the release stated.
IOC said that Union Ministry of Petroleum and Natural Gas has conveyed that no funds have been
allocated for capital support to Oil Marketing Companies (OMC’s) in the Budget 2024-25, as
against the earlier proposed allocation of Rs 30,000 crore.
The company took the decision to withdraw the rights issue due to the central government’s ‘non-participation’. “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,” the release further stated.
IOC share price & Q1 2024-25 Results
IOC shares closed at Rs 179.69 apiece. The stock has turned out to be a multibagger as it has jumped around 100 per cent in the last one year.
Indian Oil registered revenue from operations of Rs 2,15,989 crores for the Q1 2024-25 as compared to Rs 2,21,145 crores in the Q1 of the previous financial year. The PSU company sold 25.252 million metric tonnes of products, including exports, during the quarter ending June this year.
The Net Profit was registered at Rs 2,643 crore in Q1 2024-25; it was Rs 13,750 crores during the first quarter of 2023-24. “Average Gross Refining Margin (GRM) during the Q1 2024-25 is $6.39 per bbl as compared to $8.34 per bbl in corresponding quarter of previous financial year. The core GRM for current quarter after offsetting inventory loss/ gain comes to $2.84 per bbl,” the company mentioned it in its financial papers.
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