Indian Oil rises 2% as board approves setting up of yarn project in Odisha

Indian Oil Corporation shares gained 1.8 per cent in Monday's trade, logging an intraday high at Rs 139.75 per share on BSE. The buying of the stock came after the company's board approved the setting up of a yarn project at Bhadrak (Odisha) at an estimated cost of Rs 4,382.21 crore.

 

Around 10:39 AM, Indian Oil share price was up 1.46 per cent at Rs 139.25 per share on BSE. In comparison, the BSE Sensex was up 0.82 per cent at 78,682.79. The market capitalisation of the company stood at Rs 1,96,638.24 crore. The 52-week high of the company stood at Rs 196.8 per share and the 52-week low stood at Rs 122.05 per share.

 

The setting up of the yarn project is approved to be done in a 50:50 Joint Venture (JV) with MCPI Pvt. Ltd. The Oil India’s equity contribution of towards the project stands at Rs 657.33 crore.

 

"It is hereby informed that the Board at its meeting held today i.e. on 20th December 2024 has accorded Investment approval for setting up of a Yarn Project consisting of 900 TPD Continuous Polymerisation (CP) unit with downstream units of Draw Textured Yarn (DTY), Fully Drawn Yarn (FDY), Polyester chips and associated facilities at Bhadrak (Odisha) at an estimated cost of Rs 4,382.21 crore through (50:50) Joint Venture with MCPI Pvt. Ltd. with IndianOil’s equity contribution of Rs 657.33 crore," the filing read.

 

Indian Oil Corporation Limited (IOCL), established in 1959, is one of India's largest and most prominent public sector oil companies. Headquartered in New Delhi, IOCL is a major player in the energy sector, involved in the refining, distribution, and marketing of petroleum products such as petrol, diesel, LPG, and petrochemicals. It operates the largest network of refineries in India, with a refining capacity exceeding 80 million metric tons per year, and boasts an extensive retail network of over 50,000 fuel stations nationwide. 

 

As a Maharatna PSU, Indian Oil is a significant contributor to India's energy security and government revenue. Additionally, the company is expanding into natural gas and renewable energy sectors, aligning with India's shift toward cleaner energy. With a strong financial standing, IOCL remains a major force in the Indian economy, providing steady returns to its investors through consistent dividend payments.

 

In the past one year, Indian Oil shares have gained 7.2 per cent against Sensex's rise of 9.3 per cent. 

 

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