Indian Oil Corporation Limited (IOC) has withdrawn the proposed rights issue of up to Rs 22,000 crore. The company's board had approved raising funds by issuing equity shares on rights basis on July 7, 2023. "In view of the non-participation of the Government of India (promoters) in the rights issue, the board in its meeting held on September 30, 2024 has decided to withdraw the proposed rights issue of equity shares," the company said in an exchange filing.

The company has said in the filing, "In this regard, we would like to inform that the Ministry of Petroleum and Natural Gas has apprised that no funds have been allocated for capital support to Oil Marketing Companies (OMCs) in Budget 2024-25, while an allocation of Rs 30,000 crore was proposed earlier. Therefore, in view of the non-participation of the Government of India (promoters) in the right issue, the Board has decided to withdraw the proposed right issue of equity shares in its meeting held on 30 September 2024. " Standalone net profit fell 81 percent IOC reported an 81 percent decline in its standalone net profit for the quarter ended June 2024 to Rs 2,643 crore as compared to Rs 13,750 crore in the previous year quarter. During this period, the company's income has declined 2 percent year-on-year to Rs 2.15 lakh crore. On Monday, the company's stock closed at Rs 179.69, down 0.18 per cent. IOC shares have nearly doubled in the last one year, while this year so far, a growth of 38.4 per cent has been seen.