IOC Rights Issue 2023: One of India’s leading fuel retails Indian Oil Corporation (IOC) is planning to raise capital through right issue of equity shares. The rights issue is a corporate action wherein companies allow their existing shareholders to buy additional shares directly from them at a discounted price.
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Announcing its fundraising plans, the oil marketing company on Tuesday said that the board meeting is scheduled on July 7 to consider and approve the rights issue. The issue, if announced, will be subject to various statutory approvals.
“it is hereby informed that a Board Meeting of the Company is scheduled on Friday, 7th July, 2023, inter alia, to consider raising of capital through Right Issue of equity shares to meet the capital expenditure plan for its various projects, subject to various statutory approvals as may be required,” IOC said in an exchange filing.
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Indian Oil Corporation is a public sector company under the ownership of the Ministry of Petroleum and Natural Gas. It is the largest state-owned oil refiner in the country. Its headquartered is based in New Delhi.
IOC’s announcement plan to raise capital through right issue comes just a few days after another fuel retailer Bharat Petroleum Corporation Ltd (BPCL) got the board’s approval to raise up to Rs 18,000 crore through rights issue of shares to eligible shareholders. The company will use the funds to achieve energy transition, net zero and energy security objectives.
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IOC Share Price Target
Shares of the fuel retailer were trading slightly in the green at Rs 95.10 at 1:57 pm. The stock has gained over 5 per cent in past 5 days. It has gotten an upwards target by brokerage firm Prabhudas Lilladher. According to it, Indian Oil Corporation is likely to report operationally strong results due to sharp recovery in marketing margins. It has set a price target of Rs 125 on IOC.
