Indian Oil Corporation (IOC) shares gained over 1 per cent in the early trade on Wednesday after the oil marketing company on Tuesday (post market hours) informed stock exchanges that it has signed memorandum of understanding (MoU) with Nepal Oil Corp (NOC) to lay a Rs 275-crore oil pipeline from Raxaul in Bihar to Amlekhgunj in Nepal.
At 9.50 am, IOC was trading 1.19 per cent higher at Rs 399.45. It opened at Rs 394 and had touched a high and low of Rs 400.85 and 387.35, in trade so far.
In a BSE filing, the company said, “The estimated cost of this project is Rs 275 crore and the completion period is 30 months after receipt of statutory clearances. This pipeline will ensure long term supply of petroleum products to Nepal from IOC as well as stability of supplies from India to Nepal, which will benefit both the countries.”
For the quarter ended June 2015, IOC reported net profit of Rs 6435.70 crore, up 155 per cent, against Rs 2522.94 crore in the corresponding quarter a year ago.
The promoters holding in the company stood at 68.57 per cent while institutions and non-institutions held 7.17 per cent and 24.26 per cent, respectively.
The scrip closed 0.22 per cent lower at Rs 393.20.