Indian Oil Corporation to acquire 4.93 per cent stake in Indian Gas Exchange

Board has also approved to build pipeline system from Mundra to Panipat.

The market leader in oil refining & petroleum, Indian Oil Corporation (IOC) Ltd has announced today that it would be acquiring a 4.93 per cent equity stake in Indian Gas Exchange Ltd (IGX). In the company’s board meeting, it approved the purchase of 36,93,750 equity shares of IGX. 

IGX is India’s first automated national level “Gas Exchange”, which ensures transparent price discovery in natural gas and facilitates the growth of natural gas in India’s energy basket. The company’s press release noted that the acquisition of an equity stake in IGX was a strategic opportunity for Indian Oil to become part of India's natural gas market and to increase its presence to achieve a leadership position in the market. 

In the second announcement, IOC’s board has also approved the investment proposal of a new crude oil pipeline system from Mundra to Panipat. The estimated cost of the project is Rs 9,028 crore. The project is anticipated to be completed in 36 months. 

The Maharatna company’s stock closed slightly down by 0.37 per cent today on the BSE at Rs 109.1. The stock has a 52-week high and low of Rs 141.75 and Rs 84.20, respectively.