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Indian Oil Corp seeks nod to fix borrowing limit at INR 1.1 lakh Crore

Indian Oil Corp, the nation's largest oil firm, has sought shareholders' nod for fixing its borrowing limit at INR  110,000 crore as well as for raising INR 11,000 crore through a privately placed debenture issue in the current fiscal. IOC's current borrowing limit stands at INR 110,000 crore and it is seeking shareholders' nod to meet the new Companies Act requirement.

In the notice seeking shareholder nod through postal ballot, IOC  said nod is being sought for "borrowing limits up to INR 1,10,000 crore for both domestic and foreign borrowings as per the provisions of Section 180(1)(c) of the (Companies) Act in order to meet its working capital requirement and capital expenditure programme". Also, it plans "to raise funds by issue of bonds (in the nature of debentures) up to INR 11,000 crore on private placement basis".

IOC officials said the company's current borrowing stands at about INR 70,000 crore. The company plans to raise INR 11,000 crore through redeemable non-convertible bonds/debentures this fiscal to meet its capital needs.

Source-On Request