160 per cent returns: This multibagger energy company forms JV with Sun Mobility Pvt Ltd and plans to raise Rs 22,000 crore via rights issue!
The stock is up by 70 per cent in just 3 years and over 160 per cent in 1 decade.
Indian Oil Corporation Ltd informed that a Board Meeting of the company on July 07, 2023, has approved the raising of capital by way of the issue of equity shares on the right basis up to an amount not exceeding Rs 22,000 crore, subject to receipt of necessary statutory approvals as may be required. The details of the rights issue viz. the issue price, right entitlement, record date, issue open date, issue closure dates, terms of payment etc., will be intimated separately in accordance with the applicable laws, and subject to receipt of necessary approvals as may be required.
Additionally, the company Formation of a joint venture company for battery swapping business in India as a private limited company with a 50:50 collaboration between Indian Oil and Sun Mobility Pvt Ltd. Singapore (SMS) with Indian Oil’s equity investment of Rs 1800 crore till the financial year 2026-27. The Board has also accorded approval for an investment of USD 78.31 million in IOCL Singapore Pvt Ltd, Singapore (a Wholly Owned Subsidiary of Indian Oil) for the acquisition of preference shares and warrants of SMS.
Earlier, Indian Oil Corporation Limited (Indian Oil) and Praj Industries Limited (Praj) signed a term sheet to advance plans to strengthen biofuel production capacities in India. Various biofuels covered under this MoU include Sustainable Aviation Fuel (SAF), Ethanol, Compressed Bio-Gas (CBG), Biodiesel and Bio-bitumen among others. In October 2021, both Companies entered into an agreement to form a 50:50 Joint Venture to this end.
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Indian Oil Corporation Limited explores for and refines crude oil, in addition to manufacturing petroleum & petroleum products. The greatest majority shareholding in the company is held by Indian Government.
On Friday, shares of the company plunged 1.88 per cent to Rs 97.38 per share with a day high of Rs 101.44 and a low of Rs 99.05. The stock also traded at a new 52-week high of Rs 101.44 per share.
The stock is up by 70 per cent in just 3 years and over 160 per cent in 1 decade. Investors should keep an eye on this large-cap PSU stock.