Chennai Petroleum Corp gains after board OKs JVC with IOC & other investors

Chennai Petroleum Corporation advanced 4.15% to Rs 318.65 after the company's board approved the Proposal for formation of a joint venture company (JVC) with Indian Oil Corporation (IOC) and other seed equity investors.

The other seed equity investors include Axis Bank, HDFC Life Insurance Company, ICICI Bank, ICICI Prudential Life Insurance Company and SBI Life Insurance Company.

The JVC is being formed for Implementing the 9 MMTPA refinery project at Cauvery Basin Refinery, Nagapattinam District, at an estimated cost of Rs 31,580 crore.

Further, the board of CPCL also accorded approval for equity investment of upto Rs 2,570 crore by CPCL in the joint venture, towards CPCL's contribution of 25%.

Chennai Petroleum Corporation (CPCL), one of the leading group companies of Indian Oil corporation, is one of the most complex refineries of its kind in the country, producing an array of value-added petroleum products. As on 30 June 2022, Indian Oil Corporation held 51.89% stake in CPCL.

The company's standalone net profit surged to Rs 2,358.79 crore in Q1 FY23 as against Rs 53.73 core in Q1 FY22. Net sales surged to 183.6% to Rs 23,162.55 crore in Q1 June 2022 as against Rs 8,166.46 crore recorded during the same period in the previous year.

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