10% Stakes in the Joint Venture Between IOCL and CPCL Will Be Purchased: ICICI Bank, Axis Bank, and Others

ICICI Bank, Axis Bank, and SBI Life Insurance will each invest 50,000 to acquire a 10% interest in the target firm, which will be formed with seed capital of 5 lakh apiece.

Highlights

  • The transaction will be finished 180 days after the joint venture agreement's signing.
  • Axis Bank moved up 0.4% to $879 on the BSE, while ICICI Bank's stock finished 1.12% higher at $937.40.
  • On the BSE, CPCL increased by 4.18 percent to 199.50 and IOCL increased by 3.08 percent to 72.05.

StakesOn Thursday, it was reported that ICICI Bank, Axis Bank, and SBI Life Insurance would each buy a 10% stake in the proposed joint venture between Chennai Petroleum and Indian Oil Corporation.

ICICI Bank, Axis Bank, and SBI Life Insurance will each invest 50,000 to acquire a 10% interest in the target firm, which will be formed with seed capital of 5 lakh apiece. According to ICICI Bank's regulatory filing, "ICICI Bank as seed equity investor does not have any commitment to fulfil the future equity requirement of the Project, beyond first seed capital contribution of 50,000."

“The Target entity is initially proposed to be incorporated through seed capital of Rs. 5 lakh, in which the Acquirer, Axis Bank Limited (“Bank"), will subscribe 10% of total paid up capital of the Target entity. The Bank as seed equity investor does not have any obligation to fund the future equity requirement of the Project, beyond initial seed capital contribution of Rs. 50,000," said Axis Bank in its regulator filing.

The transaction will be finished 180 days after the joint venture agreement's signing.
A nine million metric tonne per year refinery is what the joint venture between Indian Oil Corporation (IOCL) and Chennai Petroleum plans to build in Nagapattinam, Tamil Nadu. Together, Indian Oil Corporation and Chennai Petroleum Corporation will own 50% of the company, or 25% each.  Petroleum products will be produced at the refinery.

Axis Bank moved up 0.4% to $879 on the BSE, while ICICI Bank's stock finished 1.12% higher at $937.40. On the BSE, CPCL increased by 4.18 percent to 199.50 and IOCL increased by 3.08 percent to 72.05.

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