Indian Oil Closed The Week With Major Gains Amid Ethanol Allocation Boost

Indian Oil Corporation, one of the biggest publicly owned companies, closed the week in a strong position, with overall gains of over 4 per cent in the week. This is despite the slight dampener thrown in by the markets on Friday.

This comes to pass in a week when the status of the overall Indian markets has been going through a period of lull.

On Friday, the company shares dropped by 0.86 per cent or Rs 1.05.

This, however could do not dampen the spirit of the progress that the company shares made over the week.

While IOC shares closed in red on Friday, over the past five trading sessions, the Indian Oil shares gained 4.29 per cent or Rs 5.01, taking the overall value of the company shares to Rs 121.74 per piece.

This surge in price has brought the overall decline in the recent past. In the past month of trade, the company shares have declined by 6.73 per cent

Why is this happening?

This surge in the past week has come to pass at a time when Gulshan Polyols received an allocation deal to process and supply ethanol to various locations across India.

The order is valued at Rs 124.13 crore and is for supplying 21,220 kiloliters of ethanol. And, it was bagged through a tender.

And oil marketing companies, including Indian Oil, placed the order.

Gulshan Polyols

This allocation was made under the Ethanol Blended Petrol Programme (EBPP). This programmer aims to increase Ethanol production

The Muzaffarnagar-based Gulshan Polyols produces a wide variety of products.

This includes starch, sugar, sorbitol, ethanol, and calcium carbide.

The company also has an expansive clientele extending to multiple sectors, including essential industries like pharmaceuticals and agrochemicals, as well as food and agriculture. In addition, it also has a foothold in personal care, footwear, tyres, rubber, plastics and paints.