B M Bansal
Chairman, Indian Oil Corporation Ltd.
Public sector IndianOil has sought shareholder approval for a follow-on public offer to the extent of 10% of the paid-up capital or 242.79 million shares of Rs 10 each, the company told the Bombay Stock Exchange on Tuesday. The company will also invest over Rs 47,000 crore in new and additional refining capacity along with enhancing pipeline network, its chairman BM Bansal said while addressing shareholders at the company’s annual general meeting here. The company’s board is also seeking approval from shareholders to increase authorised capital of the company to Rs 6,000 crore comprising 600 crore shares of Rs 10 each from Rs 2,500 crore comprising 250 crore shares of Rs 10 each.
“Our projected investments of over Rs 47,000 crore in new and additional refining capacity, enhanced pipeline network and marketing touch-points ensure that our nation will always have a secure and reliable energy resource for development,” Bansal told shareholders. The company is also setting up a styrene butadiene rubber unit at Panipat in joint venture with TSRC Corp, Taiwan, and Marubeni Corp, Japan. “This project will add value to the intermediate streams of our Panipat Naphtha cracker complex,” he said.
The company has recently commissioned the naphtha cracker and downstream polymer unit at Panipat and the first batch of polymer has been despatched, he said.
“The demand for petrochemicals in the domestic segment is strong and slowly, we are seeing the established market move to speciality polymer while much of India and China are focussing on commodity polymers,” Bansal said.