Indian Oil Corp withdraws proposed rights issue of up to Rs 22,000 crore shares

Indian Oil Corporation (IOC) Ltd on Monday announced withdrawal of the proposed rights issue of equity shares of up to Rs 22,000 crore due to the Centre's 'non-participation'. "This is in continuation of our earlier intimation dated 07.07.2023 wherein it was informed that the Board has accorded approval for Raising of capital by way of issue of equity shares on Right basis up to an amount not exceeding Rs 22,000 crore, subject to receipt of necessary statutory approvals," IOC stated.

"In this regard, we would like to inform that the MoP&NG has conveyed that no funds have been allocated for capital support to Oil Marketing Companies (OMC's) in the Budget 2024-25, as against the earlier proposed allocation of Rs 30,000 crore. Therefore, in view of the Govt. of India's (Promoters) non-participation in the Right Issue, the Board at its meeting held on 30.09.2024 has decided to withdraw the proposed Right Issue of equity shares," the state-run firm added.

On the stock-specific front, IOC shares were up 0.19 per cent at Rs 180.25. At this price, the scrip has gained 38.28 per cent on a year-to-date (YTD) basis. Around 11.35 lakh shares were last seen changing hands on BSE. The figure was slightly higher than the two-week average volume of 11.19 lakh shares.

Turnover on the counter came at Rs 20.38 crore, commanding a market capitalisation (m-cap) of Rs 2,54,464.72 crore.

IOC's stock was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The scrip's 14-day relative strength index (RSI) came at 63.31. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the company's stock has a price-to-equity (P/E) ratio of 8.91 against a price-to-book (P/B) value of 1.44. Earnings per share (EPS) stood at 20.19 with a return on equity (RoE) of 16.13.

As of June 2024, the government owned a 51.50 per cent stake in the oil PSU.