Indian Oil Corporation Limited, With a 33,000-plus work-force, extensive refining, distribution & marketing infrastructure and advanced R&D facilities, plays a significant role in fuelling the socio-economic development of the country. With a mandate to ensure India’s energy security and self-sufficiency in refining & marketing of petroleum products, IOC has in the past six decades provided energy access to millions of people across the length and breadth of the country through its ever-expanding network of over 47,800 customer touch-points. With a turnover of Rs. 5,06,428 crore and a net profit of Rs. 21,346 crore in 2017-18, and a market capitalisation of 1,71,511 crore, IOC is recognised as one of India’s most valuable companies. Also, The Company continues to be the largest contributor to the national exchequer in the form of duties and taxes. During the year 2017-18, Rs. 1,90,670 crore was paid to the exchequer as against Rs. 1,79,014 crore paid in the previous year. # Refineries:– IOC continues to set up state-of-the-art refineries across the country to meet the growing demand for petroleum products. As on 31st March 2018, the Company owns 11 (including two of its subsidiary) of India’s 23 refineries with a combined refining capacity of 80.70 MMTPA, accounting for 33% of domestic refining capacity. # Pipeline:– IOC operates a network of 13,400 km of cross-country pipelines for transporting crude oil, refined petroleum products, and natural gas, with a cumulative throughput capacity of 94.79 MMTPA of oil and 9.5 MMSCMD of gas. During the year, 543 km of new pipeline sections were commissioned.Currently, IOC operates six crude oil tank-farms, with individual tank capacities ranging from 30,000 kilo-litres (kl) to 85,000 kl, for smooth onward transport to refineries through pipelines. # Marketing:– Keeping all parts of the vast nation well supplied with essential petroleum products is a 24/7 commitment from IOC People. During the year, IOC continued its dominance in the domestic market with a market share of over 44%, covering the entire range of petroleum products from LPG, petrol, diesel, CNG, aviation fuels, lubricants, naphtha, furnace oil, specialty products, etc. The marketing and distribution network was expanded to over 47,800 customer touch points during the year. The company has declared an Interim Dividend of 67.5% i.e. Rs. 6.75 per equity share of face value of Rs.10/- each. The record date for Buyback as well as for Interim Dividend Pursuant to regulation 42(2) of the listing regulations, it is further notified that the Company has fixed Tuesday, the 25th December 2018 as the record date. # The retail holding in IOCL was less than 0.86% (as on March 31, 2018)# 15% reservation for the buyback of 3.1% of paid-up equity implies at least 0.46% of paid up equity will be bought from retail investors# Acceptance ratio =0.46/0.86 = 53% (as on March 31, 2018) The financials of the company looks very good, RoNW is 22.26% and at CMP its looks very reasonably priced. Also company has declared Interim Dividend of Rs 6.75/- and its regular dividend paying company. But, there is very little difference between CMP (Rs 141) and Buyback Price (Rs 149), so if stock price falls around 130 to 135, than one may go for buy. So we give NEUTRAL rating to this buyback.
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