Inter State Oil Carrier Ltd, which was originally promoted to engage in the business of trading and investment in shares and securities by Shanti Lal Jain and Sanjal Jain was formally created and deployed as a legal entity as Patodi Dalmia Investors Pvt Ltd in West Bengal in May '84. It was converted into a public limite company in Nov. 94 and it's name was subsequently changed to Inter State Financial Services.

In 1995, the company diversified into bulk tanker transportation, goods transportation and leasing business in which the promoters have two decade of experience. To part-finance it's diversification programme of transportation business (for acquiring tanker lorries) and augment long term resources it came out with a public issue in Mar 1995.

In 1996-97, the due to unfavourable market conditions both in bourses and industial scenario the company's plans viz. increasing the fleet of tankers etc went awry.