President of India-Backed Oil Exploration Company Forms JV with Assam Valley Fertilizer and Chemical Company Ltd for Namrup IV Ammonia-Urea Fertilizer Plant

DSIJ Intelligence-1 / 28 Jul 2025/ Categories: Mindshare, Trending

President of India-Backed Oil Exploration Company Forms JV with Assam Valley Fertilizer and Chemical Company Ltd for Namrup IV Ammonia-Urea Fertilizer Plant

The stock is up by 37 per cent from its 52-week low of Rs 322.15 per share.

Oil India Ltd. (OIL), a prominent Central Public Sector Undertaking in India's oil and gas sector, has announced the incorporation of a new Joint Venture Company (JVC) named "Assam Valley Fertilizer and Chemical Company Limited" (AVFCCL). This formation is in accordance with a Joint Venture Agreement signed between the Government of Assam (GoA), Oil India Limited (OIL), National Fertilizers Limited (NFL), Hindustan Urvarak & Rasayan Limited (HURL), and Brahmaputra Valley Fertilizer Corporation Limited (BVFCL). The primary objective of AVFCCL is to establish a new Ammonia-Urea Complex, specifically the Namrup IV Fertilizer Plant, in Namrup, Assam.

AVFCCL was incorporated on July 25, 2025, in India, bearing CIN- U20121AS2025PLC028598, and operates within the Fertilizer industry. Oil India Ltd. has acquired an 18 per cent shareholding in the newly formed entity by subscribing to 18,000 equity shares at Rs 10 each, totaling Rs 1,80,000. The total subscribed capital of AVFCCL stands at 1,00,000 shares of Rs 10 each. The incorporation required governmental approval from the Department of Fertilizers (DoF), Ministry of Chemicals and Fertilizers, Government of India, and the consideration for share subscription was made in cash.

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Oil India Ltd (OIL) is a fully integrated National Oil Company, actively involved in the exploration, development, and production of crude oil and natural gas. Beyond upstream activities, the company is also engaged in the production of Liquefied Petroleum Gas (LPG), the transportation of crude oil and natural gas, and has ventured into the generation of renewable energy. Additionally, OIL provides a range of Exploration & Production (E&P) related services for oil blocks, solidifying its comprehensive presence across the hydrocarbon value chain.

The stock’s 52-week high is Rs 767.30 per share and its 52-week low is Rs 322.15 per share. The company has a market cap of over Rs 70,000 crore and has been maintaining a healthy dividend payout of 26.1 per cent. The stock has a PE of 11x whereas the sectoral PE is 12x with ROE and ROCE of 13 per cent each.

The President of India owns the majority of the stake, i.e., 56.66 per cent. The stock is up by 37 per cent from its 52-week low of Rs 322.15 per share.

Disclaimer: The article is for informational purposes only and not investment advice.