Indraprastha Gas gains on reports of Delhi HC ruling

Indraprastha Gas rose 2.88% to Rs 456.60 at 15:07 IST on BSE on reports that the Delhi high court directed taxi-hailing companies to run only on CNG.

Meanwhile, the BSE Sensex was up 159.83 points, or 0.57%, to 28,358.12.

On BSE, so far 1.75 lakh shares were traded in the counter, compared with an average volume of 64,151 shares in the past one quarter.

The stock hit a high of Rs 463 and a low of Rs 463 so far during the day. The stock hit a 52-week high of Rs 488.30 on 22 January 2015. The stock hit a 52-week low of Rs 349 on 8 August 2014.

According to reports, the Delhi high court yesterday, 15 July 2015, told mobile app-based taxi service provider, Ola cabs, that it was inclined to allow only compressed natural gas (CNG)-based cabs to provide point-to-point service in the national capital.

At present, vehicles in the fleets of Meru Cabs, Mega Cabs and Easy Cabs, besides hundreds of black-and-yellow taxis, are reportedly fuelled by CNG in the city.

The court was hearing a plea of ANI Technologies, which provides cab service under OLA brand, that it is not amenable to the Delhi government's recently modified Radio Taxi Scheme as cabs under it already have all India permits (AIPs).

The company, which claims to be a taxi aggregator, has said that as per Supreme Court orders, cabs only have to comply with Euro-II norms and CNG was not a mandatory requirement.

The court, however, said that all public service vehicles running in the capital have to run on CNG.

The next hearing is on 28 July 2015. If the mobile app-based cab aggregators such as Uber and Ola cabs are eventually allowed to operate only CNG-fuelled cabs, it has the potential to increase costs for them, and set a precedent for the rest of the country, reports added.

Indraprastha Gas retails CNG to automobiles and piped cooking gas to households in Delhi and adjoining cities of Ghaziabad, Noida and Greater Noida.

Indraprastha Gas' net profit rose 6% to Rs 95.88 crore on 5.3% decline in net sales to Rs 912.91 crore in Q4 March 2015 over Q4 March 2014.

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