State-owned refiner Indian Oil Corporation has decided to withdraw the proposed rights issue of equity shares to raise upto ₹22,000 crore towards meeting capital expenditure plan for various projects with no funds allocated in Union Budget 2024-25 for capital support to oil marketing companies.

“We would like to inform that the MoP&NG has conveyed that no funds have been allocated for capital support to OMC’s in the Budget 2024-25 as against the earlier proposed allocation of ₹30,000 crore,” Indian Oil said in a filing.

In view of the government of India’s (promoters) non-participation in the rights issue, the company’s board at its meeting on Monday decided to withdraw the proposed issue.

Indian Oil had in July 2023, in a filing, said it is considered raising capital through rights issue to meet the capital expenditure plan for its various projects, subject to various statutory approvals as may be required. Consequently, the company’s Board had accorded approval for raising capital by way of issue of equity shares on right basis upto an amount not exceeding ₹22,000 crore subject to receipt of necessary statutory approvals.