Thursday, September 4, 2008

I.O.C. and the Bond market

After a gap of 6 years IOC has tapped the bond market to raise term money at a fixed rate of 11% for 10 years and 11.15% for 3 years. The issue size is Rs 300 crores but company can accept higher subscription under GREENSHOE option. IOC is the largest refining and marketing company that controls 10 out of India's 19 operational refineries. IOC suffers a loss of Rs 240 crores everyday on sale of its products at a subsidized rate.However,this is recompensed by Government through issue of OIL BONDS.

1 comment:

Unknown said...

excellent approach...