Oiling Along

The market has given a big thumbs up to IOC’s plans to rework its energy mix and stay ahead of competition.

- Anilesh S. Mahajan

In June this year, when he took over as Chairman and Managing Director of Indian Oil Corporation (IOC), Sanjiv Singh had to hit the ground running. Even before he took charge, two mammoth goals were set – redefining IOC’s role in the coming scenario where electric vehicles will dominate and rollout of cleaner BS VI fuels. The challenges multiplied in November, when Petroleum Minister Dharmendra Pradhan advanced the deadline for the BS VI transition in the national capital region (NCR), by two years to April 2018.

In spite of these challenges, IOC’s average market cap rose to ₹1,82,654 crore between October 2016 and September 2017 – 69.9 per cent up from ₹1,07,534 crore in the corresponding period a year earlier. The peak was ₹2,18,831 crore on May 16 this year. This took IOC from 22nd to the 11th slot in BT 500 rankings. Since October, however, the market cap has dipped 3.4 per cent till November 20.