Indian Oil on Monday withdrew a proposed rights issue worth Rs 22,000 crore, according to a regulatory filing.
“We would like to inform that the MoP&NG has conveyed that no funds have been allocated for capital support to Oil Marketing Companies (OMCs) 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 company said in the exchange filing.
The Rights Issue was originally approved on July 7, 2023, and aimed at raising capital through equity shares. However, with the Government of India (the promoter) deciding not to participate, IOC’s Board has opted to withdraw the issuance plan.
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