Sensex Ends 164 Points Lower; Bajaj Finserv And Shree Cement Among Top Nifty Losers

The Indian Oil's board has accorded stage - 1 approval for implementation of styrene monomer project with a capacity of 387 thousand metric tonnes per annum (TMTPA) at Indian Oil's Panipat refinery and petrochemical complex.

Styrene is used to produce polystyrene, paints and coatings/acrylic, unsaturated polyester resins, and elastomers such as acrylonitrile butadiene styrene (ABS), styrene-butadiene rubber (SBR), etc.

Presently India's Styrene consumption is around 900 TMTPA, and the demand is expected to increase consistently over the next 15-20 years.

However, there is no domestic Styrene capacity in India. The entire demand is met through imports from Singapore, Middle East, and Southeast Asia, causing significant inconvenience to the domestic Styrene downstream industry.

The proposed Styrene project will address this issue to a great extent and reduce the nation's import dependence substantially.

Thus, considerable forex savings of about Rs 36.5 bn (US$500 m) per annum is likely to be generated.

'The project would be commissioned by 2026-27. Availability of Styrene domestically is expected to accelerate the growth of downstream industry and create employment opportunities,' the company said.

Earlier in February 2021, the Indian Oil board approved the Panipat refinery expansion project to enhance its capacity from the existing 15 MMTPA to 25 MMTPA with capital expenditure (CAPEX) of Rs 329.5 bn.

IOC's share price ended the day down by 0.4% on the BSE.

Moving on to news from the banking sector...

Union Bank of India's Board Approves Fund Raising Plan

Union Bank of India's board of directors on Wednesday approved fundraising, including via equity and bonds, of up to Rs 97 bn.

Within the overall limit of Rs 97 bn, the public sector bank is planning to raise up to Rs 35 bn via equity and up to Rs 62 bn via bonds (Additional Tier 1 and/or Tier 2), according to a regulatory filing.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...

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