Axis Bank signs an agreement to invest in the seed equity capital of Joint Venture of Indian Oil Corporation and Chennai Petroleum Corporation

Axis Bank Limited has entered into an agreement on November 23, 2022 in relation to an initial investment in the seed equity capital of the proposed Joint Venture (JV) of Indian Oil Corporation Limited (IOCL) and Chennai Petroleum Corporation Limited (CPCL).

Axis Bank signs an agreement to invest in the seed equity capital of Joint Venture of Indian Oil Corporation and Chennai Petroleum Corporation.

Axis Bank signs an agreement to invest in the seed equity capital of Joint Venture of Indian Oil Corporation and Chennai Petroleum Corporation

Target entity will be a proposed Joint Venture Company of Indian Oil Corporation Limited (IOCL) and Chennai Petroleum Corporation Limited (CPCL) (“the Promoters”) for implementing a 9 MMTPA refinery at Nagapattinam, Tamil Nadu in which IOCL and CPCL shall together hold 50% equity stake (25% each) and balance would be held by other JV partners. Refinery shall produce petroleum products including MS (Petrol), HSD (Diesel), LPG, etc. and petrochemical products such as polypropylene.

The Target entity is initially proposed to be incorporated through seed capital of Rs. 5 lakh, in which the Acquirer, Axis Bank Limited (“Bank”), will subscribe 10% of total paid up capital of the Target entity.

The Bank as seed equity investor does not have any obligation to fund the future equity requirement of the Project, beyond initial seed capital contribution of Rs. 50,000/

Post investment, Axis Bank Limited will hold 10% shareholding in the Target entity through acquisition of 5,000 equity shares of face value Rs. 10 each.

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