ICICI Bank to acquire 10% stake in proposed JV of IOCL & CPCL

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

ICICI Bank to acquire 10% stake in proposed JV of IOCL & CPCL

New Delhi: The ICICI Bank on November 24, 2022, announced that the bank has entered into an agreement dated 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) (“Target entity”).

The Target entity will be a proposed Joint Venture Company of IOCL and CPCL (“the Promoters”) for implementing a 9 MMTPA refinery at Nagapattinam, Tamil Nadu in which IOCL and CPCL shall together hold a 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 5 lakh, in which the Acquirer, ICICI Bank Limited (“ICICI Bank”), will subscribe 10% of the total paid-up capital of the Target entity.

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