Indian Oil Corporation (IOC) is planning to invest Rs 1,000 crore for raising stake in Chennai Petroleum Corporation (CPCL) by subscribing to preferential issue. Shareholders of CPCL have decided to increase authorised share capital of the company from Rs 400 crore (40 crore shares of Rs 10 each) to Rs 1,400 crore.
The increased share capital would be by way of creation of 100 crore preference shares of Rs 10 each. The enhanced share capital of the company would thus comprise of 40 crore equity shares of Rs 10 each and 100 crore preference shares of Rs 10 each.
Currently, IOC holds 51.89% in CPCL, while the other promoter, Iran’s Naftiran Inter Trade Company, owns 15.40%.