Oil India Ltd will buy back 5.04 crore of its shares for a little over Rs 1,085 crore as part of the government’s push to cash-rich PSUs to part with their surplus either by paying higher dividends or through share buybacks, to help meet revenue targets.
Oil India rose 0.82% to Rs 202.70 at 13:48 IST on BSE after the company said its board approved the proposal to buyback 5.04 crore shares at Rs 215 each.
The government is planning to sell shares worth over $2 billion in state-owned oil firms – Oil and Natural Gas Corp (ONGC), Indian Oil Corp (IOC) and Oil India Ltd (OIL) – the Economic Times reported citing sources familiar with the development.
State-controlled Oil India posted a 33.4 per cent rise in its second-quarter profit on Monday, helped by strong gains from its crude oil segment, but missed analysts’ estimates.
Oil India has received shareholders’ approval to raise up to Rs 7,000 crore through issuance of bonds and debentures on private placement basis, the state-owned firm informed stock exchanges Sunday.
The Niti Aayog has denied ‘permission’ to state-run Oil India (OIL) to venture into the country’s reinvigorated city gas distribution (CGD) business, arguing that exploration companies must focus on their core activities given the country’s stagnant oil production.
The government today imposed restrictions on export of bio-fuels within days of putting similar conditions for its imports. A licence is required for both exports and imports of bio-fuels.
The government has notified a new policy requiring state-owned Oil and Natural Gas Corp Ltd (ONGC) and Oil India Ltd (OIL) to pay royalty and cess tax only to the extent of their equity holding in certain pre-1999 oil and gas fields.
State-owned Oil India Ltd today reported a 56 per cent jump in its April-June quarter net profit on back of higher oil prices.
Oil India Ltd today said the current prices of crude oil are “comfortable” for both the country and the state-owned company.