IOC board approves rights issue to raise up to ₹22,000 crore

run by the state Indian Oil Corporation (IOC) said on Friday that its board of directors has approved an increase of up to ₹ 22,000 crore via Rights issuewhich is likely to be used among other things in green energy initiatives.

The country’s largest oil marketing company (OMC) also announced the formation of a joint venture (JV) with Sun Mobility to enter the battery replacement business.

“Raise capital by issuing equity shares on a valid basis up to an amount not exceeding $22,000 crore subject to receipt of necessary statutory approvals as required,” the IoC said in a filing at BSE.

She added that the details of the rights issue will be indicated separately.

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“Formation of JV Battery Replacement Business in India as a Private Limited Company with a 50:50 collaboration between IOC and Sun Mobility Pte. Ltd. Singapore (SMS) with IndianOil equity investment of Rs 1,800 crore till FY27,” said the IOC.

The Board also approved an investment of $78.31 million in 10CL Singapore, a wholly owned subsidiary, for the acquisition of Preferred Shares and SMS Warranties. She added that these investments are subject to receiving the necessary legal/regulatory approvals.