State-run Indian Oil Corporation Ltd (IOCL) on Friday (July 7) said its board of directors has approved the raising of capital up to Rs 22,000 crore via a rights issue.
"Raising of capital by way of issue of equity shares on right basis upto an amount not exceeding Rs 22,000 crore subject to receipt of necessary statutory approvals as may be required," the company said in an exchange notification.
The details of the rights issue, like the issue price, right entitlement, record date, issue open date, issue closure dates, terms of payment, etc, will be intimated separately and subject to receipt of necessary approvals as may be required, it said
Also, the board of IOCL has approved the formation of a joint venture for battery swapping business in India as a private limited company.
The company will form a joint venture in a 50:50 collaboration between Indian Oil Corporation and Sun Mobility Pte Ltd Singapore. Indian Oil Corporation's equity investment for the business will be Rs 1,800 crore until the financial year 2026-27, the company said.
Further, it approved the investment of $78.31 million in I0CL Singapore Pte Ltd, Singapore (a wholly owned subsidiary of Indian Oil), for the acquisition of preference shares and warrants of SMS.
The state-owned oil refiner's proposed rights issue is seen as strengthening its capex spending and the credibility of its emission reduction plans. The government, which is the majority owner of the company, is likely to subscribe to the rights issue and infuse equity in the company.
Shares of Indian Oil Corporation Ltd ended at Rs 99.25, up by Rs 0.65, or 0.66 percent on the BSE.
(Edited by : Shoma Bhattacharjee)
