IGL awaits SC verdict

Indraprastha Gas Ltd (IGL) is currently the top gainer on the BSE, up over 2% at Rs.283.60, with an intra day high at Rs.287.80. Interestingly, same day last year, on 4th April 2012, the stock had hit a new 52-week high at Rs.375.60. Volumes are extremely robust at over 86 ,000 shares.

The stock is buzzing in the morning trades as verdict is awaited today from the Supreme Court over the  government regulator Petroleum and Natural Gas Regulatory Board (PNGRB) tariff order. If one may recollect, last year on 1st June’12 , the Delhi High Court had ruled that the PNGRB did not have the power to fix any component of network tariff or compression charges for any entity having its own distribution network. PNGRB wanted tariff to be cut by around 60% and post the High Court order, it had filed a 'special leave petition' in the Supreme Court against the order of Delhi High Court on this issue.

This overhang of the Supreme court has kept the stock price largely subdued and  if the verdict comes in today in favor the company, the price could zoom up further.