GAIL (India) surges after PNGRB raises tariff for KG Basin pipeline

GAIL (India) rose 4.3% to Rs 354 at 14:43 IST on BSE after Petroleum and Natural Gas Regulatory Board raised the tariff on the company's K.G. Basin natural gas pipeline network sharply with effect from 1 April 2016.

Meanwhile, the S&P BSE Sensex was up 96.02 points or 0.39% at 24,778.50.

On BSE, so far 1.92 lakh shares were traded in the counter as against average daily volume of 1.02 lakh shares in the past one quarter. The stock hit a high of Rs 359.80 and a low of Rs 344.30 so far during the day. The stock had hit a 52-week high of Rs 418 on 25 June 2015. The stock had hit a 52-week low of Rs 260.25 on 25 August 2015. The stock had underperformed the market over the past one month till 16 March 2016, gaining 5.31% compared with Sensex's 6.43% rise. The scrip had, however, outperformed the market in past one quarter, sliding 1.35% as against Sensex's 3.18% fall.

The large-cap company has equity capital of Rs 1268.48 crore. Face value per share is Rs 10.

The piped and natural gas regulator Petroleum and Natural Gas Regulatory Board (PNGRB) raised the tariff on GAIL's K.G. Basin natural gas pipeline network sharply to Rs 45.32 per mmbtu on Gross Calorific Value (GCV) basis from Rs 5.56 per mmbtu with effect from 1 April 2016. PNGRB in its tariff order set tariff at Rs 5.56 per mmbtu for the K.G. Basin natural gas pipeline for the period from 20 November 2008 to 31 March 2016 and Rs 45.32 per mmbtu for the period from 1 April 2016 to 11 February 2017. The economic life of GAIL's K.G. Basin natural gas pipeline ends on 11 February 2017.

GAIL (India)'s net profit rose 10% to Rs 664.26 crore on 10.4% decline in net sales to Rs 13380.05 crore in Q3 December 2015 over Q3 December 2014.

GAIL (India) is India's leading natural gas company with a presence along the entire hydrocarbon value chain spanning E&P, LNG, pipelines, LPG, petrochemicals, city gas distribution etc. The Government of India (GoI) held 56.74% stake in GAIL (India) as per the shareholding pattern as on 31 December 2015.

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