InvestorQ : Why is IOCL setting up a finance company unit?
Crowny Pinto made post

Why is IOCL setting up a finance company unit?

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2 months ago
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Indian Oil Corporation (IOC) has just set up a finance unit to pool funds of overseas units to meet capital and trade finance needs. It will play a more proactive role in handling the treasury operations of IOCL and group companies. The new unit will help IOC to benefit from interest arbitrage even as its borrowings are rising as it sells fuel below cost.

The finance unit will be based in the IFSC (Gift City) in Gujarat. Companies based in GIFT City are eligible to get 100% income tax exemption for a period of 10 years. The finance unit will do fund pooling of foreign companies and utilise for carrying out trade financing of IOC.

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