Indian Oil Corporation (IOCL) accorded approval for the acquisition of 36,93,750 equity shares of the face value of Rs 10 each equivalent to 4.93% stake of Indian Gas Exchange (IGX), a subsidiary of Indian Energy Exchange (IEX).
Shares of Indian Oil Corporation (IOCL) rose 0.55% to Rs 109.50 while Indian Energy Exchange (IEX), which owns Indian Gas Exchange (IGX), advanced 2.35% to Rs 244.20 on BSE.
Indian Gas Exchange (IGX) started operations in June 2020, as a gas trading platform and has been functioning as the gas exchange since December 2020. It operates under the regulatory framework of the Petroleum and Natural Gas Regulatory Board (PNGRB). The major equity holders of IGX include Oil and Natural Gas Corporation (ONGC), Gas Authority of India (GAIL), Adani Total Gas and Torrent Gas.
As per the company's press statement, the acquisition of equity stake in IGX will provide an opportunity for Indian Oil Corporation (IOCL) to become part of india's natural gas market and increase its presence to achieve leadership position in the market.
Additionally, in a separate announcement, Indian Oil Corporation (IOCL) on 20 December 2021 intimated regarding the approval for an investment proposal of new crude oil pipeline system with nameplate capacity of 17.5 million metric tonnes per annum (MMTPA) from Mundra (Gujarat) to Panipat (Haryana) alongwith with augmentation of crude oil tank farm at Mundra, at an estimated cost of Rs 9,028 crore. The project will meet the enhanced crude oil requirement arising out of capacity expansion of Panipat Refinery to 25 MMTPA from 15 MMTPA.
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The project is expected to be completed within 36 months (3 years) and would be synchronized with the commissioning of Panipat Refinery expansion project.
IOCL reported a 1.1% increase in consolidated net profit to Rs 6235.39 crore on a 63% rise in net sales to Rs 1,33,202.17 crore in Q2 FY22 over Q2 FY21.
IOCL is India's largest oil refining and marketing company, with a refining capacity of 80.7 MT (market share 33%), more than 32,000 retail outlets (42% market share), 3.2 MT of petrochemical production capacity and operations in the upstream and city gas distribution business. The Government of India 51.50% stake in the company as on 30 September 2021.
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