ICICI Bank, Axis Bank, SBI Life Insurance on Thursday announced that it will acquire 10 per cent stake each in a proposed joint venture of Indian Oil Corporation and Chennai Petroleum.
The target entity which will be incorporated through seed capital of ₹5 lakh each will see ICICI Bank, Axis Bank and SBI Life Insurance each to buy 10 percent stake for ₹50,000.
“ICICI 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 ₹50,000,” ICICI Bank further added in its regulatory filing.
“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,” said Axis Bank in its regulator filing.
“The Target entity is initially proposed to be incorporated through seed capital of Rs. 5 lakhs, in which the Acquirer, SBI Life Insurance Company Limited, will subscribe 10% of total paid-up capital of the Target entity. SBI Life Insurance Company Limited 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,” said SBI Life Insurance in its filing.
The acquisition will be completed within 180 days from the date of joint venture agreement.
The joint venture of Indian Oil Corporation (IOCL) and Chennai Petroleum aims to set up a nine million metric tonne per annum refinery at Nagapattinam, Tamil Nadu. Indian Oil Corporation and Chennai Petroleum Corporation will together hold 50 per cent stake, i. e 25 per cent each.
The refinery shall produce petroleum products.
ICICI Bank scrip ended 1.12 per cent higher to ₹937.40, while Axis Bank was up by 0.40 per cent to ₹879 on BSE.
While IOCL and CPCL were up by 3.08 per cent to ₹72.05 and CPCL was up by 4.18 per cent to ₹199.50 on BSE.
