Indian Oil Corporation (IOC) has announced the withdrawal of its proposed Rs 22,000 crore rights issue. The company had initially approved raising capital through the issuance of equity shares on a rights basis, subject to statutory approvals, as per its earlier notification dated July 7, 2023.Bangalore Wealth Management

However, in a board meeting held on September 30, 2024, IOC decided to withdraw the rights issue following the Ministry of Petroleum & Natural Gas (MoP&NG) informing that no funds have been allocated for capital support to Oil Marketing Companies (OMCs) in the 2024-25 budget.Lucknow Investment

In a stock exchange filing, IOC said, "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 upto an amount not exceeding Rs. 22,000 crore (Rupees Twenty Two Thousand crore only), subject to receipt of necessary statutory approvals."

The earlier proposed allocation of Rs 30,000 crore was not included in the final budget, leading to the government's decision not to participate in the rights issue.

"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 RsKanpur Investment. 30,000 croreIndore Stock. 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," it added.

The Board meeting, which commenced at 11:30 am and concluded at 2:30 pm, confirmed the decision to retract the capital-raising effort.