Indian Oil Corporation (IOC) FPO Review
After Power Grid FPO, its now turn of IOC – Indian Oil Corporation. The IOC FPO will be launched in January 2011. This is the season of IPOs and FPOs and government of India has planned to launch FPOs of its 8 PSUs.
The second candidate for FPO is IOC.
It has raised retail prices of petrol by Rs 0.32 a litre due to rising global crude oil prices. A litre of petrol at IOC's fuel stations would cost at Rs 52.91 in New Delhi from Tuesday, nearly 2.9% dearer since late June. This will be the third increase in domestic retail prices of petrol since New Delhi ended government control of petrol prices in late June.
Pointing out that, Narasimhan said that decision of raising diesel prices lies on govt.
He informed that diesel under recovery is currently at Rs 2.62 per litre while H1FY10 under-recovery of Rs 4,400 crore is yet to be reimbursed.
This is really a good fundamentals. IOC is India’s leading company in oil business. It has several joint ventures also.
So in my opinion, you should start saving money from right now to fill this FPO. IOC is a fundamentally strong company and it can give you long term growth of your capital.
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