IOC to set up a Naphtha Cracker project in Odisha; stock trades weak

Shares of the oil marketing company Indian Oil Corporation (IOC) traded rangebound in Thursday's session (December 26) even as the broader Nifty Oil and Gas index traded with a positive bias. At around 10:58 am, its shares traded 0.29 per cent or Rs 0.4 lower at Rs 137.85 per share on the BSE.

The oil refiner reportedly will ink a memorandum of understanding (MoU) with the Odisha government next month for setting up a naphtha cracker project at port town of Paradip at an estimated investment Rs  61,000 crore.

A statement said that the MoU will be signed between the Odisha government and the IOCL in January during the 'Utkarsh Odisha – Make in Odisha 2025' summit. The foundation stone of the IOC's upcoming Rs 4,352 crore yarn project at Bhadrak will also be laid at that time, it added.

Earlier this week, IOC's Chairman met Chief Minister Mohan Charan Majhi at State Secretariat for discussing progress of the different ongoing and upcoming projects of the company in Odisha.

“During the discussion it was decided that the IOCL and Odisha Government will sign a memorandum of understanding for the naphtha cracker project at Paradip in January. The project has received in-principle approval and IOCL will invest more than ₹61,000 crore for the project,” saod Chief Minister’s Office in a statement.

Trendlyne data suggests that the consensus recommendation from 32 analysts for the stock is 'hold' with 9 analysts signalling a 'strong buy' on the counter. 

IOC share price performance

On a year-to-date basis, the stock has gained just over 6 per cent, while its 3-year return is at over 87 per cent.

(With inputs from agencies)