IOC, Chennai Petroleum Shares Rise After Joint Venture Pact
Chennai Petroleum and Indian Oil ink joint venture pact for Rs 31,580 crore refinery project
Shares of Indian Oil Corporation Ltd. and Chennai Petroleum Corporation Ltd. extended gains for the second straight day following a joint venture deal.
Chennai Petroleum, Indian Oil Ink Joint Venture Pact For Rs 31,580 Crore Refinery Project
Chennai Petroleum Corp., Indian Oil Corp., along with seed equity partners have signed joint venture agreement for 9 MMTPA refinery project in Nagapattinam, Tamil Nadu.
IOC, CPCL to hold 25% of equity stake each, while balance 50% stake would be held by investors.
The planned investment in the refinery is Rs 31,580 crore and it will cater to the demand for petroleum products in Southern India.
Seed equity partners include ICICI Bank, HDFC Life and SBI Life, among others.
The Indian Oil Corporation stock traded 2.22% higher, and Chennai Petroleum advanced 1.53% at 11:10 a.m., compared to a decline of 0.11% in the benchmark Nifty 50.
The total traded quantity of Indian Oil shares was 2.3 times the 30-day average. The relative strength index of the stock is at 75, indicating that it might be 'overbought'.
Of the 36 analysts tracking the company, 23 maintain 'buy', seven suggest 'hold' and six recommend 'sell', according to Bloomberg data. The 12-month consensus price target implies an upside of 8.4%.