GAIL shares rise as company re engages to revive PTA manufacturing plant

GAIL (India) shares rose 2.1 per cent on BSE in Thursday's trade and logged an intraday high of Rs 199.15 per share. The stock rose after the company re-engaged with process licensor INEOS to support the purified terephthalic acid (PTA) manufacturing plant's revitalisation.

 

Purified Terephthalic Acid (PTA) is a crucial raw material primarily used in the production of polyester fibers, plastics, and films.

 

However, around 1:09 PM, GAIL's share price pared some gains and was up 0.72 per cent at Rs 196.4 per share on BSE. In comparison, the BSE Sensex was down 1.28 per cent at 79,211.08. The market capitalisation of the company stood at Rs 1,29,134.96 crore. The 52-week high of the stock stood at Rs 246.35 per share and the 52-week low was at Rs 125.2 per share. 

 

 

"GAIL (India) Limited, through its wholly owned subsidiary GAIL Mangalore Petrochemicals Limited (GMPL), has re-engaged with Process Licensor INEOS to support the plant's revitalization, formalizing this renewed collaboration through an Amendment Agreement signed here," the filing read. 

 

With this, the company tends to revive GMPL’s 1.25 MMTPA PTA manufacturing plant located in the Special Economic Zone (SEZ), Mangalore.

 

Following GAIL's acquisition of JBF through the Corporate Insolvency Resolution Process (CIRP) under the National Company Law Tribunal (NCLT) in June 2023, the company is now working to overcome the legacy challenges and ensure the plant’s successful on-streaming and long-term operational stability.

 

“Through this strategic partnership and renewed focus, GAIL aims to position GMPL as a key player in the domestic PTA market while supporting the country’s growth in petrochemical manufacturing,” said R.K. Singhal, director of GAIL.

 

Singhal added: The successful realisation of this project is expected to have a positive impact by reducing the country’s import burden and strengthening India’s manufacturing capabilities in the petrochemical sector.

 

GAIL (India) Limited is a state-owned natural gas processing and distribution company in India, established in 1984 and headquartered in New Delhi. It is one of the largest companies in India's natural gas sector and operates under the Ministry of Petroleum and Natural Gas, Government of India. GAIL is primarily involved in the transportation, distribution, and marketing of natural gas, as well as the production of petrochemicals and liquefied petroleum gas (LPG).

 

In the past one year, GAIL shares have gained 59 per cent against Sensex's rise of 21 per cent.