Gujarat Gas rallies on PNGRB approval to start operations in Thane, Dadra & Nagar Haveli

The stock rallied 14% to Rs 761 on the National Stock Exchange in early morning trade.

Shares of Gujarat Gas Company has rallied 14% to Rs 761 on the National Stock Exchange (NSE) in early morning trade after the company said it has received approval to commence operations in Thane and Dadra & Nagar Haveli.

GSPC Gas Company and Gujarat Gas Company (GGCL) received authorisation from the market regulator, Petroleum and Natural Gas Regulatory Board (PNGRB) to set up the gas network in Union Territory (UT) Dadra and Nagar Haveli and Thane in Maharashtra.

“Pursuant to the letter dated April 01, 2015 from PNGRB, received by GGCL on April 10, 2015 granting GGCL an authorisation to lay, build, operate, or expand city or local natural gas distribution network (CGD network) for the geographical area of Thane (excluding areas already authorized), GGCL has accepted the authorisation in Schedule D of the PNGRB vide a confirmation letter to PNGRB, on April 13, 2015,” Gujarat Gas said in a statement.

GGCL has been granted 300 months of infrastructure exclusivity i.e. valid up to April 01, 2040 and 60 months of marketing exclusivity valid up to April 01, 2020 for the CGD network, it added.

The stock opened at Rs 705 and touched a high of Rs 764 on the NSE. The trading volumes almost doubled with a combined 1.29 million shares changed hands on the counter on the NSE and BSE till 0942 hours.