GAIL (India) rose 0.83% to Rs 388.60 at 15:20 IST on BSE after the Cabinet Committee on Economic Affairs approved viability gap funding/partial capital grant for a gas pipeline project.
Meanwhile, the S&P BSE Sensex was down 26.90 points or 0.09% at 28,496.30.
On BSE, so far 1.2 lakh shares were traded in the counter as against average daily volume of 1.51 lakh shares in the past one quarter. The stock hit a high of Rs 392.30 and a low of Rs 386.30 so far during the day. The stock had hit a 52-week high of Rs 407.80 on 7 September 2016. The stock had hit a 52-week low of Rs 276.45 on 10 November 2015. The stock had outperformed the market over the past one month till 20 September 2016, gaining 5.97% compared with 1.59% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 0.08% as against Sensex's 6.16% rise.
The large-cap company has equity capital of Rs 1268.48 crore. Face value per share is Rs 10.
The Cabinet Committee on Economic Affairs (CCEA) today, 21 September 2016, approved viability gap funding/partial capital grant at 40% or Rs 5176 crore of the estimated capital cost of Rs 12940 crore to GAIL (India) for development of 2,539 kilometers (KM) long Jagdishpur-Haidia and Bokaro-Dhamra Gas Pipeline (JHBDPL) project. JHBDPL project will connect Eastern part of the country with National Gas Grid. Further, the CCEA approved the simultaneous development of city gas distribution (CGD) networks in few cities like Varanasi, Patna, Ranchi, Jamshedpur, Bhubaneswar, Kolkata, Cuttack etc en-route of JHBDPL project. These distribution networks will be developed by GAIL (India) in collaboration with the concerned state governments.
Separately, GAIL (India) announced that it has successfully started its first UNIPOL polyethylene process line in Pata. The announcement was made during market hours today, 21 September 2016. GAIL (India) said that UNIPOL polyethylene (PE) process line has the capacity to produce 4 lakh tons of PE per year. The total production capacity of GAIL's petrochemical plant at Pata, Uttar Pradesh is now 8.1 lakh tonnes per annum. GAIL's flexible high-density polyethylene (HDPE)/linear low-density polyethylene (LLDPE) swing plant provides access to a full range of resin applications which will allow GAIL and its customers to capture new market opportunities as PE market demands are changing.
The new process line gives GAIL the platform to expand its PE product capabilities, providing Indian PE converters with the high quality, domestically produced resin products needed for both large-volume markets as well as advanced performance applications.
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GAIL (India)'s net profit jumped 244% to Rs 1335.18 crore on 14.6% decline in net sales to Rs 10686.58 crore in Q1 June 2016 over Q1 June 2015.
State-run GAIL (India) is India's largest natural gas company with a market share of over 80% in natural gas transmission. Apart from natural gas transmission, distribution and processing, GAIL has diversified business interests in LPG transmission, petrochemicals, city gas projects and exploration and production activities. Government of India (GoI) holds 56.11% stake in GAIL (as per shareholding pattern as on 30 June 2016).
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