State-run oil refiner Indian Oil Corporation Limited (IOCL) announced on Tuesday that it has acquired a 4.93 per cent equity share in Indian Gas Exchange Limited - the country's first automated national level gas exchange.
Indian Oil's board of directors approved the deal at its meeting held on December 20, according to a regulatory filing by Indian Oil to the stock exchanges today.
"The Board of Indian Oil at its meeting held on 20 December 2021 has accorded approval for the acquisition of 36,93,750 equity shares of the face value of Rs.10/- each equivalent to 4.93 per cent of the share capital in Indian Gas Exchange Limited (IGX)," the company said in a statement.
The acquisition of an equity stake in IGX is a strategic opportunity for the country's top oil refiner to become part of India's natural gas market. IGX is a subsidiary of the Indian Energy Exchange (IEX). Indian Gas Exchange is the country's first automated national level gas exchange, that ensures transparent price discovery in natural gas and facilitates the growth of natural gas in India's energy basket.
IGX started operations in June 2020, as a gas trading platform and has been functioning as the gas exchange since December 2020. It operates under the regulatory framework of the Petroleum and Natural Gas Regulatory Board (PNGRB). The major equity holders of IGX include Oil and Natural Gas Corp (ONGC), Gas Authority of India Limited (GAIL), Adani Total Gas, and Torrent Gas.
In a separate filing, Indian Oil announced today that it will invest Rs 9,028 crore for setting up a crude oil pipeline from Mundra to Panipat. On Tuesday, shares of Indian Oil opened on the BSE at Rs 109.25, touching an intra day high of Rs 110.35 and an intra day low of Rs 108.65, during the trading session so far.
At 2:40 pm, shares of Indian Oil were trading 0.09 per cent lower at Rs 108.80 apiece on the BSE.