Shares of gas companies, led by Indraprastha Gas, today nosedived by up to 46% in the morning trade amid reports that Petroleum and Natural Gas Regulatory Board has directed the company to cut gas tariffs in Delhi.
Following the reports, shares of the company fell sharply by 45.85% to a 52-week low of Rs 187.70 at the NSE.
Declines were seen in other gas-related stocks on similar concerns over the Board's reported directive.
Among other gas utilities, GAIL India was down 3.08%, Gujarat Gas plunged 7.09%, Petronet LNG declined 3.94% and Gujarat State Petronet slide 7.76%.
"Revision in prices has battered the stock. Profitability of IGL may decline by 40% with similar impact on the stock price and a cut in earnings per share," Kishor Ostwal CMD CNI Research said.
As per reports, IGL currently charges a network tariff of Rs 104.05 per MMBTU (million British thermal Units). In addition, it also levies compression charges at Rs. 6.66 per kg for compressed natural gas (CNG).
However, reports suggest that the tariff was very high compared to the extant PNGRB notified rates.
PNGRB has directed Indraprastha Gas to reduce its selling prices and refund the difference in the two tariffs with immediate effect, reports said.
