Indian Oil's board to meet on this date to consider rights issue

Indian Oil right issue: Board of Indian Oil Corporation (IOC) has scheduled a board meeting on Friday, July 7 to consider raising capital through the rights issue of equity shares. This is part of a government’s plan to infuse capital into three state-owned fuel retailers to fund their net zero carbon emission projects. The oil marketing company in its regulatory filing on the stock exchange said, "Board Meeting of the Company is scheduled on Friday, 7t 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."

The government, which is the majority owner of the company, is likely to subscribe to the rights issue and infuse equity in the company.

IOC share price target: Should you buy, sell or hold?

JP Morgan has maintained an overweight call on Indian Oil and has raised its target to Rs 110 from Rs 100.

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 Rs 30,000 crore of 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 the state-owned Oil and Natural Gas Corporation (ONGC), is likely to make a preferential share allotment to the government to get the capital. IOC had last month doubled its authorised share capital to Rs 30,000 crore.

Indian Oil share price NSE

At 12:59 AM, Indian Oil shares surged on Thursday to trade at Rs 98.5, dup by over 3.14 per cent on NSE.

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