Gujarat Gas spurts after PNGRB approves setting up distribution network in Thane

Gujarat Gas Company rose 14.32% to Rs 762.55 at 9:39 IST on BSE after the company said it received authorisation from the downstream regulator to set up city gas distribution network in Thane, Maharashtra.

The announcement was made after trading hours on Monday, 13 April 2015. The stock market was shut yesterday, 14 April 2015, on account of Dr. Baba Saheb Ambedkar Jayanti.

Meanwhile, the BSE Sensex was up 2.24 points, or 0.01%, to 29,046.68.

On BSE, so far 2.32 lakh shares were traded in the counter, compared with an average volume of 1.09 lakh shares in the past one quarter.

The stock hit a high of Rs 764.35 and a low of Rs 701.30 so far during the day. The stock hit a record high of Rs 812.55 on 24 December 2014. The stock hit a 52-week low of Rs 347.60 on 16 April 2014.

The stock had outperformed the market over the past one month till 13 April 2015, rising 13.10% compared with 1.90% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 10.97% as against Sensex's 5.90% rise.

The mid-cap company has an equity capital of Rs 25.65 crore. Face value per share is Rs 2.

Pursuant to the letter dated 1 April 2015 from Petroleum and Natural Gas Regulatory Board (PNGRB), received by Gujarat Gas Company (GGCL) on 10 April 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 13 April 2015.

As per the provisions of the PNGRB (exclusivity for city or local natural gas distribution networks) Regulation, 2008, GGCL has been granted 300 months of infrastructure exclusivity i.e. valid up to 1 April 2040 and 60 months of marketing exclusivity valid up to 1 April 2020 for the CGD network. Further, the authorised area for laying, building, operating or expanding the proposed CGD Network shall cover a geographical area of 8,683 square kilometre, GGCL said in a statement.

On a consolidated basis, net profit of Gujarat Gas Company declined 15.15% to Rs 76.92 crore on 23.32% decline in net sales to Rs 594.19 crore in the quarter ended December 2014 over the quarter ended December 2013.

Gujarat Gas Company is a part of Gujarat state controlled GSPC Group and is into distribution of natural gas.

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