Indraprastha Gas Ltd (IGL) is a big news maker today. The stock price has surged 6.5% to Rs.297.05, clocking volumes of almost 2 lakh shares this morning alone v/s 1.70 lakh shares over 2-week average.
The market is enthused with the news that IGL has agreed to take over the supply of natural gas in Gurugram district from Haryana City Gas Distribution Ltd.
This finally ends the ongoing feud between the two for years. The Petroleum and Natural Regulatory Board (PNGRB) had previously authorised Haryana Gas Ltd for city gas distribution but IGL had challenged that saying it was authorised by the central government in 2004, years before PNGRB came into existence.
The two companies
The two companies have also agreed to the Additional Solicitor General’s suggestion to appoint Deloitte Haskins and Sells LLP as an independent valuer of the business. Deloitte Haskins will have to submit the report within four weeks or by Nov. 30.
This bodes well for IGL as the penetration achieved by Haryana Gas has been very low, throwing open a huge market for IGL.
IGL is already the largest CNG distribution company in the country having set up 425 CNG stations in less than two decades.