IOCL gains after signing MoU with Nepal Oil Corporation

IOCL rose 0.57% to Rs 397 at 9:30 IST on BSE after the company and Nepal Oil Corporation signed a MOU for construction of 1.3 million metric tonne per annum capacity Raxaul-Amlekhgunj petroleum product pipeline.

The company made announcement after market hours yesterday, 25 August 2015.

Meanwhile, the S&P BSE Sensex was down 213.85 points or 0.82% at 25,818.53.

On BSE, so far 18,792 shares were traded in the counter as against average daily volume of 2.26 lakh shares in the past one quarter.

The stock hit a high of Rs 398 and a low of Rs 387.35 so far during the day. The stock had hit a record high of Rs 465.40 on 24 July 2015. The stock had hit a 52-week low of Rs 307 on 13 February 2015.

 

Indian Oil Corporation (IOCL) said that subsequent to signing of a Memorandum of Understanding (MOU) between Government of India (GoI) and Government of Nepal on 24 August 2015, IOCL and Nepal Oil Corporation (NOC) have signed an MOU yesterday, 25 August 2015 at Kathmandu for construction of 1.3 million metric tonne per annum (MMTPA) capacity Raxaul-Amlekhgunj petroleum product pipeline along with some works at Amlekhganj Petroleum Depot of NOC. The estimated cost of this project is Rs 275 crore and the completion period is 30 months after receipt of statutory clearances. This pipeline will ensure long term supply of petroleum products to Nepal from IOCL as well as stability of supplies from India to Nepal, which will benefit both the countries, IOCL said.

Meanwhile, the finance ministry on 24 August 2015, announced that despite adverse market conditions, the Offer for Sale (OFS) for divestment of Government of India's 10% stake in IOCL through the stock exchanges mechanism was oversubscribed. The institutional investors' portion was subscribed 143% and the retail investors' portion was subscribed 18%. With total subscription of approximately Rs 11107 crore, the OFS was oversubscribed by 18%. The OFS was completed in a single trading session on 24 August 2015.

With this disinvestment, the Government of India's take in IOCL will come down to 58.57%.

IOCL's net profit surged 155.1% to Rs 6435.70 crore on 19.7% decline in total income to Rs 102141.77 crore in Q1 June 2015 over Q1 June 2014.

IOCL is India's flagship national oil company, with business interests that straddle the entire hydrocarbon value chain - from refining, pipeline transportation and marketing of petroleum products to exploration & production of crude oil & gas as well as marketing of natural gas and petrochemicals.

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