Chennai Petroleum Jumps To Two-Month High On Proposal To Form JV With Indian Oil

Shares of Chennai Petroleum Corp. Ltd. jumped over 7% during the session on a proposal to form a joint venture with Indian Oil Corp. Ltd. The stock closed at a two-month high.

• The company approved a proposal to form joint venture company with Indian Oil and other seed equity investors like Axis Bank, HDFC Life Insurance, ICICI Bank, ICICI Prudential Life, SBI Life.

• The joint venture is intended to implement a 9 MMTPA refinery project in Cauvery Basin Refinery in Tamil Nadu for Rs 31,580 crore.

• Chennai Petroleum also gave approval for equity investment of up to Rs 2,570 crore in the joint venture.

• The stock closed with nearly 3% gains to Rs 314.5 apiece, the highest closing price in two months since June 29.

• The stock has gained 11% in two sessions.

• Trading volume is more than 3.4 times the 30-day average.