Mumbai, Sep 30 (IANS): India's largest oil marketing company (OMC), Indian Oil Corporation (IOC) on Monday announced the withdrawal of its proposed Rs 22,000 crore rights issue due to no funds being allocated for capital support to the companies in the Union Budget 2024.

In July 2023, the board of directors of the IOC approved raising capital through the issuance of equity shares on a right basis.

The Ministry of Petroleum & Natural Gas (MoP&NG) has said that no funds were allocated for capital support to OMCs in the budget, in comparison to the earlier proposed allocation of Rs 30,000 crore, the IOC said.

In an exchange filing, the company said: "This is in continuation of our earlier intimation dated July 7, 2023, wherein it was informed that the board has accorded approval for raising of capital by way of issue of equity shares on right basis up to Rs 22,000 crore, subject to the necessary statutory approvals."

"In this regard, we would like to inform you that the MoP&NG has conveyed that no funds have been allocated for capital support to Oil Marketing Companies (OMCs) in the Budget 2024-25, as against the earlier proposed allocation of Rs. 30,000 crore. Therefore, in view of the Govt. of India’s (Promoters) non-participation in the right Issue, the board at its meeting held on September 30 has decided to withdraw the proposed right Issue of equity shares," It added.

The meeting of the Board of Directors commenced at 11.30 am and concluded at 2.30 pm.

In Monday's trading session, shares of IOC closed at Rs 179.69, down 0.18 per cent.

IOC is the largest oil marketing company in India. According to the company website, it processes over 1.6 million barrels of crude oil daily. The company has an expansive network of 61,000+ customer touchpoints, including 37,500+ fuel stations. IOC also delivers more than 26 lakh LPG cylinders daily.