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Indian Oil Corp (IOC) will invest Rs 1,000-1,500 crore to raise its stake in Chennai Petroleum Corporation Ltd (CPCL), which will be used by the south Indian refiner to expand operations.
The state-owned refiner will make the investment by buying fresh shares of CPCL through a proposed private placement, sources said.
The firm currently holds 51.89 per cent in CPCL, while the other promoter, Iran’s Naftiran Inter Trade Company Ltd, owns 15.40 per cent, according to the Bombay Stock Exchange Web site.
CPCL had announced on Wednesday that its board would meet tomorrow to consider increasing the authorised share capital and issue of preference shares on private placement to IOC.
Sources said IOC board would also ratify the proposed investment into CPCL tomorrow.
IOC shares were trading 0.07 per cent up at Rs 348.50 per unit during afternoon session on the BSE.
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