Shares of Chennai Petroleum Corp. Ltd. jumped over 7% during the session on a proposal to form a joint venture with Indian Oil Corp. Ltd. The stock closed at a two-month high.
The company approved a proposal to form joint venture company with Indian Oil and other seed equity investors like Axis Bank, HDFC Life Insurance, ICICI Bank, ICICI Prudential Life, SBI Life.
The joint venture is intended to implement a 9 MMTPA refinery project in Cauvery Basin Refinery in Tamil Nadu for Rs 31,580 crore.
Chennai Petroleum also gave approval for equity investment of up to Rs 2,570 crore in the joint venture.
The stock closed with nearly 3% gains to Rs 314.5 apiece, the highest closing price in two months since June 29.
The stock has gained 11% in two sessions.
Trading volume is more than 3.4 times the 30-day average.
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