Indraprastha Gas rose 1.94% to Rs 215.05 after the company announced the formation of a joint venture (JV) with Rajasthan Rajya Vidyut Utpadan Nigam (RVUNL) for setting up a solar power project in the state of Rajasthan.
The joint venture (JV) between the two will have equity participation in the ratio of 74:26, meaning IGL will hold a 74% stake in the JV, while RVUNL will have a 26% shareholding, the firm added.
The JVs board of directors will comprise six directors, including four nominated by IGL and two by RVUNL.
Furthermore, it will have an initial paid-up capital of Rs 5 lakh, divided into 50,000 equity shares of Rs 10 each, the release added.
IGLs board of directors had initially approved the formation of the JV in March.
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As part of the agreement, IGL will have the right to nominate four directors to the board of the newly formed joint venture, while RVUNL will be entitled to nominate two directors. This board composition reflects the equity and governance structure agreed upon by both parties.
The company has clarified that the transaction does not fall under the category of related party transactions, and there is no conflict of interest or connection with the promoter/promoter group or group companies. Accordingly, the agreement has been executed at arm's length.
Indraprastha Gas is engaged in the marketing and distribution of compressed natural gas (CNG) and piped natural gas (PNG) within the national capital territory (NCT) of Delhi.
The company has reported 11% fall in consolidated net profit to Rs 355.94 crore despite a 11% increase in total net revenue from operations to Rs 3,913.85 crore in Q1 FY26 as compared with Q1 FY25.
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