The nation’s leading oil company, Indian Oil Corporation (IOC) Ltd, on Friday, announced the board’s approval of the public sector unit’s plan to raise capital by issuing equity shares on a rights basis up to Rs 22,000 crore, subject to regulatory approval. 

The government announced Rs 30,000 crore of capital support to state-run fuel retailers in the annual Budget for 2023-24 to support their energy transition and net zero initiatives. The government will likely subscribe to the rights issue and infuse equity in the company. 

The Bharat Petroleum Corporation Ltd (BPCL) board also approved raising up to Rs 18,000 crore through a rights issue on June 28. HPCL, majorly owned by Oil and Natural Gas Corporation (ONGC), will allot preferential shares to the government to get the capital.

IOC had last month doubled its authorised share capital to Rs 30,000 crore.

The board also approved forming a 50:50 joint venture company with Sun Mobility Pte Ltd Singapore (SMS) for a battery swapping business in India as a private limited company. The company said its equity investment would be Rs 1,800 crore until 2026-27.

The company added that an investment of $78.31 million in a wholly owned subsidiary, IOCL Singapore Pte Ltd, for acquiring preference shares and warrants of SMS is also approved but is yet to receive necessary statutory approvals.