Indian Oil Corporation (IOC) will raise 22,000 crore rupees ($2.66 billion) through a share rights issue, the state-owned refiner said on Friday.
Last month, Reuters reported that the Indian government had started planning to finance energy transfer projects at three major state refineries “IOC, Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) in exchange for equity.”
IOC, the country’s apex regulator, did not specify which projects the newly raised funds would target. It said it would provide more details on rights, including pricing and timing, after board approval.
Last week, BPCL said it would raise $2.19 billion through a rights issue to help it meet its “energy transition, net-zero and energy protection objectives.”
HPCL has not yet announced any fundraising plans. The government is seeking preferential allotment of shares from HPCL, Reuters reported.
The three refiners together aim to invest Rs 3.5-4 trillion to achieve their net zero-emission target by 2040.
Indian Oil has approved the formation of a joint venture between itself and Sun Mobility Pte Ltd Singapore, with an equity investment of Rs 1,800 crore ($217.83 million) by IOC, with a 50:50 collaboration as a private limited company for battery-swapping business in India.
Indian Oil’s share price has risen nearly 30% so far this year, while HPCL has gained 30% and BPCL has gained nearly 18%.
