Indian Oil Corp Plans Sri Lankan Subsidiary's IPO by June

Indian Oil Corp (BSE:IOC), the country's largest refiner, is preparing to list its Sri Lankan subsidiary, Lanka IOC, on the Colombo stock exchange and potentially a few Indian bourses. The company aims to raise between US$20-25 million through the initial public offering (IPO) of 24% equity in Lanka IOC. The IPO will be advised by Citigroup Inc and Deutsche Bank AG, with the timing, offer size, and price to be decided in consultation with the advisors.

Key Takeaways:

• Indian Oil Corp plans to list its Sri Lankan subsidiary, Lanka IOC, through an IPO by June this year.
• The IPO aims to raise between US$20-25 million, with 24% equity being offered to involve the local population in the island nation.
• Lanka IOC currently owns close to 150 petrol stations and a third of the fuel storage and pipeline network in Sri Lanka.
• The company will use the sale proceeds to expand its operations locally.
• Lanka IOC plans to enter the ATF (aviation turbine fuel) business by setting up a depot at the Colombo airport.
• Indian Oil Corp acquired 100 petrol stations from the Sri Lankan national oil company Ceylon Petroleum Corp for US$75 million last year.
• The company will also acquire 150 franchise petrol stations to take the total number of outlets to 250.

Statistics:

• Lanka IOC aims to raise between US$20-25 million through the IPO.
• The company plans to offer 24% equity in Lanka IOC.
• Lanka IOC currently owns close to 150 petrol stations.
• The company has an equity base of US$40 million.
• Indian Oil Corp acquired 100 petrol stations from Ceylon Petroleum Corp for US$75 million last year.

Sources:

• PTI archive, "Indian Oil plans to list Lanka IOC's shares in India."
• Asia Pulse, "Indian Oil Corp to list Sri Lankan subsidiary in June."