Indian Oil withdraws Rs 22,000 crore rights issue as govt will not participate
Indian Oil Corporation (IOC) on Monday announced that it has withdrawn its Rs 22,000 crore rights issue as the government will not participate owing to the non-allocation of funds to the oil marketing companies (OMCs) in the Budget 2024-25.
“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,” said IoC’s filing to the stock exchanges.
“In this regard, we would like to inform that the MoP&NG has conveyed that no funds have been allocated for capital support to Oil Marketing Companies (OMCs) in the Budget 2024-25, as against the earlier proposed allocation of Rs 30,000 crore. Therefore, 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 filing further added.
For the quarter ended June 2024, IOC reported an 81% fall in its standalone net profit to Rs 2,643 crore, compared with Rs 13,750 crore in the last year quarter.
Meanwhile, the revenue from operations in the said period declined 2% year-on-year (YoY) to Rs 2.15 lakh crore.
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