Three life insurers and two banks are set to pick up 50% stake in the proposed joint venture by Indian Oil (IOC) and Chennai Petroleum (CPCL). The new entity will be incorporated through a seed capital of Rs 5 lakh.
The joint venture is being set up to implement a 9 million tonne a year refinery at Nagapattinam, Tamil Nadu, in which IOC and CPCL will hold 50% stake (25% each).
Among lenders, both Axis Bank and ICICI Bank will each buy a 10% stake each in the new entity by investing Rs 50,000 each.
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The three insurers to pick up stakes in the IOC-CPCL joint venture are ICICI Prudential Life Insurance, HDFC Life Insurance and SBI Life Insurance.
HDFC Life Insurance will invest Rs 55,000 for an 11% stake in the entity, ICICI Prudential Life Insurance will invest Rs 45,000 for a 9% stake and SBI Life Insurance will invest Rs 50,000 in the entity for a 10% stake.
On Thursday, shares of Axis Bank, ICICI Bank, HDFC Life Insurance, ICICI Life Insurance and SBI Life Insurance closed higher in the 0.4-1.2% range.
Shares of Indian Oil closed 3.1% higher at Rs 72.05 on the NSE. Shares of Chennai Petroleum closed 4.2% higher at Rs 199.50 on the NSE.
