The Indian Oil Corporation Limited (IOCL) intends to raise $22,000 crore through a rights offering. The public sector oil marketing company’s (OMC) board of directors has authorized the capital raise, the gasoline retailer announced in a regulatory filing on Friday.
The board approved “capital raising through the issue of equity shares on a rights basis up to an amount not exceeding 22,000 crore, subject to necessary statutory approvals,” it said, adding that specifics such as the issue opening and closing dates, as well as the issue price, will be made available later.
The news comes only a week after the board of directors of Bharat Petroleum Corp. Ltd approved a Rs. 18,000 crore rights issuance.
The capital-raising ambitions coincide with the corporations’ plans to diversify their activities as part of their energy transformation strategies. For example, IOCL has set an ambitious goal of generating net-zero emissions by 2046 and has begun producing sustainable aviation fuel and green hydrogen.
It also plans to significantly grow its renewable energy portfolio from 238 megawatts to 10,000 charging stations for electric vehicles over the next three years.
The IOCL board also approved a 50:50 joint venture with Singapore’s Sun Mobility Pte. Ltd. for battery swapping. Indian Oil would spend Rs. 1,800 crore in equity through fiscal year 2026-27. This is the company’s second significant entry in the electric car charging industry.
Reference- Mercom India, Live Mint, Economic Times, IOCL website