Indraprastha Gas gains after Govt authorization for Ghaziabad CGD network

Indraprastha Gas rose 1.05% to Rs 376 after the central government authorized the company for development of city gas distribution network in Uttar Pradesh.

Indraprastha Gas (IGL) said it received letter dated 11 October 2019 from Petroleum and Natural Gas Regulatory Board (PNGRB) regarding acceptance of central government authorization to IGL for Ghaziabad city gas distribution (CGD) network (Ghaziabad and Hapur districts).

PNGRB granted infrastructure exclusivity for laying building or expansion of the CGD network during the economic life of the project (25 years) i.e upto year 2032 considering the year 2007 as the start of the CGD activity for the said project.

PNGRB also granted exclusivity from the purview of the contract carrier or common carrier for five years from the date of issue of acceptance of central government authorization. The announcement was made after market hours on Friday, 11 October 2019.

Shares of Indraprastha Gas soared 8.09% to its current market price of Rs 376 in five trading sessions from its previous closing low of Rs 347.85 on 4 October 2019.

Meanwhile, the S&P BSE Sensex was up 243 points or 0.64% to 38,370.42.

On the BSE, 17,211 shares were traded in the IGL counter so far compared with average daily volumes of 64,094 shares in the past two weeks. The stock hit an intraday high of Rs 378 and an intraday low of Rs 374 so far during the day.

The stock hit a 52-week high of Rs 378.05 on 11 October 2019. The stock hit a 52-week low of Rs 225 on 11 October 2018.

Indraprastha Gas' consolidated net profit rose 31.1% to Rs 245.04 crore on 22.3% surge in net sales to Rs 1,576.12 crore in Q1 June 2019 compared with Q1 June 2018.

IGL's business consists of sale of natural gas. The firm is focused on industrial and commercial business.

Powered by Capital Market - Live News