IOC surges on bourses on expansion news

In the wake of an increasing demand for petrochemicals, especially plastics and polymers, India’s largest public sector company Indian Oil has planned to invest Rs 32,000 crore to increase its output by the financial year 2021.
 
While the current investment of Rs 32,000 is a tranche of the company’s total planned strategic investment of worth Rs 1.8 trillion capex in the coming five to seven years.
 
The company charted its highest profits at Rs 19,106 crore in the financial year 2017 with the company’s petchem business as the highest contributor. The company also recorded a hike in its sales to Rs 4,38,710 crore for the corresponding period. 

The company recorded that the coverage of cooking gas rose from 56 per cent to 73 per cent over the past three years with an addition of 2.75 crore new connections, of which 1.2 crore LPG customers are provided by Indian Oil.   
The company already has operational petchem projects worth Rs 20,800 crore, whereas, it has plans of commissioning a polypropelene plant worth Rs 3,150 crore at its Odisha refinery soon.
 
The new projects introduced by the company includes MEG (mono ethylene glycol), PTA (purified terephtalic acid) and petcoke gasification manufacturing unit at the Paradip refinery and value addition at C-4 and C-5 at Panipat and a polypropylene unit at Barauni Refinery. 

The share price of the company surged by nearly 5 per cent on Wednesday's trade. The stock stood at Rs 450.50 per share in the closing hour,  up by 3.68 per cent.