Indian Oil Corporation (IOC), the nation’s top oil firm, plans to raise capital through a rights issue of equity shares as part of the government’s plan to infuse capital into three state-owned fuel retailers to fund their net zero carbon emission projects.
In a stock exchange filing, IOC said its board will meet on July 7 “to consider raising capital through a right issue of equity shares to meet the capital expenditure plan for its various projects, subject to various statutory approvals as may be required”.
The government, which is the majority owner of the company, is likely to subscribe to the rights issue and infuse equity into the company.
The board of Bharat Petroleum Corporation Ltd (BPCL) had on June 28 approved raising up to Rs 18,000 crore through a rights issue.
The government had in the annual budget for 2023-24 (April 2023 to March 2024 fiscal) announced a Rs 30,000-crore capital support to state-run fuel retailers — BPCL, IOC, and Hindustan Petroleum Corporation Ltd (HPCL) — to support their energy transition and net zero initiatives.
HPCL, which is majority owned by state-owned Oil and Natural Gas Corporation, is likely to make a preferential share allotment to the government to raise the capital.
IOC had last month doubled its authorised share capital to Rs 30,000 crore.
Rosneft board berth
Former Indian Oil Corporation (IOC) director G.K. Satish has been appointed to the board of Russian energy giant Rosneft in signs of growing links between India and Russia.
Govind Kottieth Satish, who retired as director for business development at IOC in 2021, is one of three new faces appointed to the 11-strong board of directors of Rosneft, according to a statement issued by the Russian firm.
Satish, who was appointed to the board of IOC on September 1, 2016, is one of the five independent directors on the Rosneft board.
Rosneft said its shareholders at the annual general meeting on June 30 elected a new board of directors.
Igor I Sechin, a confidant of Russian President Vladimir Putin, continues to be the CEO and chairman of the management board of Rosneft.
