Indian Oil Corporation today announced that its board is considering raising funds through the right issues of equity shares in order to meet the company’s capital expansion plans. IOC’s board meeting is scheduled to be held on July 7.
If the issue is considered it would be subject to various statutory approvals as may be required as said by the country’s prominent state-owned oil refiner as filed in the regulatory filing.
As per the market regulator SEBI (Probation of Insider Trading Regulations 2015), the unpublished information will be requiring a closure of the trading window for insiders of the company. However, it may be kept in mind that the trading window for dealing in securities is already under closure from July 15th 2023 till 48 hours after the financial results for the quarter ended June 30, 2023 are filed with stock exchanges said Indian Oil Corporation.
As a result of Russia-Ukraine war, Oil Marketing Companies had suffered a significant loss in the first half of fiscal year 2022-23. OMC did not peak its retail prices last year even after crude oil reached a peak of $140 per barrel per March 2022. Due to this, various oil refineries registered losses as petrol and diesel rates remained constant since April 2022. Indian Oil posted a exceptionally well performance last year at Rs 20,000 crore. The profits came in as a result of lower crude oil prices in 2023 and improved margins.
Crude Oil Prices posted their fourth constant quarter loss as a result of tilting economic activities. Recently, world’s top oil exporter Saudi Arabia announced further output cuts that will be implemented from August, which could further push up crude oil prices amid a tight supply in the market.
Recently, Bharat Petroleum Corporation Ltd also greenlit a fund raise worth Rs 18,000 crore through rights issue of fund their energy security plans. Brokerage firm Citi in its note said that IOC is set to follow up BPCL in issuing their funds of its own. OMC also witnessed a sharp surge in share price over last few months as their financial health improved significantly. IOC shares rose up to 22 percent whereas BPCL to 12.5 percent.
IOC shares in todays trading session touched its 52-week high at Rs 96.41 and settled at 94.61 at 0.81 percent lower on BSE.
