Shares of companies engaged in gas distribution business have rallied more than 12% after the Delhi High Court has ruled in favour of Indraprastha Gas (IGL) in the company's dispute with government regulator Petroleum and Natural Gas Regulatory Board (PNGRB).
IGL stock has rallied 40% to Rs 271 in noon trades on the Bombay Stock Exchange (BSE). As many as a combined 15.81 million shares, representing over 10% of total equity have changed hands on the counter so far, against an average sub one million shares that were traded daily in past two weeks on both the exchanges.
In April, the regulator (PNGRB) had ordered IGL to cut network tariff by around 60% retrospectively from April 2008. The total refund on account of the retrospective nature of the order was pegged between Rs 900-1,200 crore. IGL had argued that the order would wipe out the company's entire net worth of Rs 1,500 crore.
Gujarat Gas Company, Gujarat State Petronet and Petronet LNG have rallied more than 12% each on the BSE.
