Indian Oil Corporation Ltd has acquired 100% stake in Mercator Petroleum Limited

By Renu Baliyan

Large cap public sector undertaking Indian Oil Corporation Ltd (IOC) on May 24 announced that it has acquired 100% stake in Mercator Petroleum Limited (MPL) for a consideration of Rs. 154 crore. Last trading price of IOC share on May 24 was quoting Rs 168.80 per share with intraday gain of 0.54%. Indian Oil Corporation Ltd shares surged 6.20% in last 2-weeks and 63% in last 6-months. IOC share offered multibagger returns in last 2-years at 113%. Life Insurance Corporation Of India has 6.92% stake in IOC with 977,788,060 shares of the PSU. More details below:

Indian Oil Corporation Ltd Acquires 100% Stake in MPL: As per the BSE filing of IOC dated May 24, "This is in continuation of our intimation dated November 03, 2023 wherein it was informed that the resolution plan submitted by Indian Oil Corporation Limited (IndianOil) for acquisition of 100% stake in Mercator Petroleum Limited (MPL) was approved by the Hon'ble National Company Law Tribunal, Mumbai Bench vide its order dated November 02, 2023. In this regard, we would like to further inform that Indian Oil Corporation Limited has acquired Mercator Petroleum Limited (MPL) for a consideration of Rs. 154 crore."

Indian Oil Corporation Share Performance: The 52-week high price of Indian Oil Corporation share on BSE is Rs 196.80 per share (08/02/2024) and 52-week low price is Rs 85.51 per share (26/10/2023), respectively. IOC shares slipped 3.85% in last 3-months, offered return of 30% year-to-date, soared 88% in last 1-year, and rallied 131% in last 3-years.

IOC Recommends Attractive Dividend: As per the BSE filing issued on April 30, "Board has recommended a final dividend of 70% for the year 2023-24 i.e. Rs. 7.00 per equity share of face value of Rs.10/- each on the paid-up share capital, subject to the approval of the shareholders at the ensuing Annual General Meeting (AGM) of the Company. The final dividend would be paid within 30 days from the date of declaration at the AGM. The record date for payment of final dividend would be fixed and intimated in due course."

Indian Oil Corporation Ltd Q4: The PSU on April 30 announced a decline of 52% in its standalone net profit at Rs 4838 crore for the quarter ended March 2024 as against Rs 10,059 crore reported in the corresponding quarter of last year. Indian Oil Corporation Ltd's revenue from operations slipped 3% to Rs 2.19 lakh crore for Q4 as against Rs 2.26 lakh crore in the preceding year's quarter. IOC Gets Buy/Sell Call: Brokerage firm Investec downgraded Indian Oil Corporation Ltd share to sell after Q4 missed estimates amid weaker refining margins. The brokerage recommended sell call from hold to IOC shares with target price of Rs 110. It said that earnings volatility is expected to persist in future. Motilal Oswal Financial Services has recommended buy call to IOC share with target price of Rs 195.

Meanwhile, Prabhudas Lilladher issued reduce rating to IOC share with target price of Rs 151. "Factoring in structural weakness in GRMs and the inability to pass on the rise in fuel cost we anticipate gross refining margins at $6 per barrel for FY25 and FY26 and gross marketing margin at Rs 4.2 per litre for the same period. We rerate the stock from 'sell' to 'reduce' due to correction in stock price rating with a target price of Rs 151 based on 1x FY26E P/BV," said Prabhudas Lilladher. Indian Oil Corporation About: Indian Oil Corporation Ltd is India's largest commercial ISO-9002 certified enterprise, is the highest ranked Indian company in the prestigious Fortune 'Global 500' listing. IOCL is the 20th largest petroleum company in the world, according to its official website. Disclaimer: The stock has been picked from the brokerage report of Investec, Motilal Oswal, and Prabhudas Lilladher. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.