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Informist, Tuesday, Apr. 15, 2025

 

--Sources: IOC likely to raise INR 5 bln-INR 20 bln via CPs this week 

 

By Siddhi Chauhan

 

MUMBAI – Indian Oil Corp. Ltd. is likely to raise INR 5 billion to INR 20 billion through a commercial paper this week, sources aware of the development told Informist. The country's largest fuel retailer is expected to raise the funds through a two-month CP. So far this month, the fuel retailer has raised INR 77.25 billion through CPs, as per data available on Clearing Corp. of India and compiled by Informist.

 

IOC has tapped the short-term debt market this month despite it not having any redemption scheduled in the month. IOC has INR 77.25 billion of CPs that will mature in June, according to data. "Manufacturing companies are generally keen to raise funds when the rates (on short term-debt papers) are sub 7.00%," a dealer at a brokerage firm said. "They (IOC) may likely raise funds in the coming days through a June maturity paper in the band of 6.35% to 6.40%, if the flow is abundant then (the) rate can fall sub 6.40%."

 

The market will price the borrowing cost of the paper in line with the two-month paper issued by manufacturing companies, sources said. On Tuesday, a two-month paper issued by manufacturing was at 6.35%-6.40%.

 

For the quarter ended December, IOC reported a net profit of INR 28.74 billion on revenues of INR 2.17 trillion. On Tuesday, shares of the company closed at INR 132.87 on the National Stock Exchange, up 0.8%.  End

 

Edited by Ashish Shirke

 

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