According to a company statement, Indian Oil Corp (IOC) mopped up Rs 1,700 crore through issue of Secured Redeemable Non-Convertible Bonds instead of the original size of Rs 500 crore.
It is learnt that banks, insurance companies, primarily dealers, mutual funds, financial institutions, among others, have participated in the issue.
The public sector oil marketing company (OMC), which issued the bonds on private placement basis, offered interest rate of 8.14 per cent.
The statement shows the company received over-whelming response from investors as the issue was over-subscribed by more than six times with overall subscription aggregating to over Rs 3,000 crore.
The company would use the proceeds for meeting its working capital requirements. The ‘AAA’ rated bonds have a maturity of 5 years with put and call option at the end of the 18 months and 36 months.
The success of the issue again acknowledges the strong confidence of investors in IOC, the statement said.
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