Gujarat Gas spurts on a long term gas procurement deal with GSPC

Gujarat Gas Company surged 6.36% to Rs 211.40 at 9:20 IST on BSE after the company said it has entered into a memorandum of understanding with Gujarat State Petroleum Corporation for long-term gas procurement deal.

The announcement was made after market hours on Tuesday, 3 September 2013.

Meanwhile, the S&P BSE Sensex was up 114.44 points or 0.63% at 18,349.10.

On BSE, 637 shares were traded in the counter as against average daily volume of 11,423 shares over the past one quarter.

The stock hit a high of Rs 213.60 and a low of Rs 203 so far during the day. The stock had hit a 52-week high of Rs 352.50 on 1 October 2012. The stock had hit a 52-week low of Rs 159 on 7 August 2013.

The stock had outperformed the market over the past one month till 3 September 2013, surging 21.56% compared with the Sensex's 4.85% fall. The scrip had, however, underperformed the market in past one quarter, declining 14.04% as against Sensex's 7.02% fall.

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

Gujarat Gas Company (GGCL) said as per the Memorandum of Understanding (MoU) signed with Gujarat State Petroleum Corporation (GSPC) on Tuesday, 3 September 2013, GSPC has agreed to supply 0.85 mmscm of gas per day to GGCL from 1 January 2014 to 30 June 2025. The price of gas will be determined in the relevant Gas Sales Contracts (GSC) and it is expected to be formula based. The MoU is effective till 31 December 2013 or the signing of the relevant GSCs, whichever is earlier.

GGCL's consolidated net profit surged 92.8% to Rs 100.36 crore on 2.5% decline in net sales to Rs 746.84 crore in Q2 June 2013 over Q2 June 2012.

Gujarat Gas Company is India's largest private sector player in the natural gas transmission and distribution business. The company supplies gas to more than 3.86 lakh domestic, commercial and industrial customers and serves over 1.98 lakh compressed natural gas (CNG) users.

Powered by Capital Market - Live News