Indian Oil withdraws its ₹22,000 proposal. rights issue with Union Budget FY25 silent on capital support to JIs

State-owned refiner Indian Oil Corporation has decided to withdraw the proposed rights issue of shares to raise up to ₹22,000 crore to meet the capital expenditure plan for various projects without funds allocated in the state budget. Union 2024-25 for capital support to oil marketing companies.

“We would like to inform that the MoP&NG has indicated that no funds have been allocated for capital support to OMCs in Budget 2024-25 compared to the earlier proposed allocation of ₹30,000 crore,” Indian said Oil in a folder.

In view of the non-participation of the Government of India (promoters) in the rights issue, the board of directors of the company, in its meeting on Monday, decided to withdraw the proposed issue.

Indian Oil had said in a July 2023 filing that it was considering raising capital through a rights issue to meet the capital expenditure plan for its various projects, subject to various statutory approvals that could be required. Therefore, the board of directors of the company had approved raising of capital by issue of equity shares on rights basis up to an amount not exceeding ₹22,000 crore, subject to receipt of approvals necessary statutory requirements.