ICICI Bank, Axis Bank, others to acquire 10% stake each in JV of IOCL, CPCL

Target entity to be inducted through seed capital 5 lakh each will see ICICI Bank, axis Bank And SBI Life Insurance to buy a 10 percent stake each 50,000.

“ICICI Bank as a seed equity investor has no obligation to meet the future equity requirement of the project, beyond the initial seed capital contribution 50,000,” ICICI Bank further added in its regulatory filing.

“The target entity is proposed to be initially incorporated through seed capital of Rs. 5 lakh, to which the acquirer, Axis Bank Limited (“the Bank”), will contribute 10% of the total paid-up capital of the target entity. The Bank as a Seed Equity Investor is under no obligation to meet the future equity requirement. The project is beyond the initial seed capital contribution of Rs 50,000,” Axis Bank said in its regulatory filing.

“The Target Entity is proposed to be initially incorporated through a seed capital of Rs.5 lakh, wherein the acquirer, SBI Life Insurance Company Limited, will contribute 10% of the total paid-up capital of the Target Entity. SBI Life Insurance Company Limited as The seed equity investor has no obligation beyond the initial seed capital contribution of Rs 50,000 towards the future equity requirement of the project, SBI Life Insurance said in its filing.

The acquisition will be completed within 180 days from the date of the joint venture agreement.

Joint Venture of Indian Oil Corporation (IOCL) and Chennai Petroleum aim to set up a nine million metric tonne per year refinery at Nagapattinam, Tamil Nadu. Indian Oil Corporation and Chennai Petroleum Corporation will jointly hold 50 per cent, i. e 25 per cent each.

The refinery will produce petroleum products.

ICICI Bank shares closed up 1.12 per cent. 937.40, while Axis Bank closed with a gain of 0.40 per cent. 879 on BSE.

While IOCL and CPCL were up 3.08 per cent each. 72.05 and CPCL closed with a gain of 4.18 percent. 199.50 on BSE.