CPCL advances even as IOC looks to shelve merger plan

NEW DELHI: Shares of IOC slipped, while those of subsidiary Chennai Petroleum Corporation gained on Thursday amid a media report suggesting the former has dropped its plan to merge with the latter.

Following the development, shares of CPCL advanced 1.20 per cent to end at Rs 430.50 on BSE. IOC shed 0.72 per cent to close the day at Rs 414.80. BSE has sought clarification from IOC on the same.

CPCL was listed in 1994. IOC acquired the government's stake in the company in 2000-01. At present, the oil refiner holds 51.89 per cent stake in CPCL.

IOC's board recently gave approval to setting up of a Rs 27,460 crore refinery by CPCL. CPCL had in April this year recommended setting up a new 9 million tonnes a year refinery.