Adani Gas slumped 5.55% to Rs 163.25 after the media reported that the Petroleum and Natural Gas Regulatory Board has sent show cause notice to the company for non disclosure of information.
The stock fell 14.37% to hit the day's low at Rs 148, its lowest intraday level since 26 December 2019.
Adani Gas had bid for gas projects using net worth calculation of Adani Enterprises. The Petroleum and Natural Gas Regulatory Board of India (PNGRB) notice has sent to the company for not disclosing scheme of arrangement with Adani Enterprises, the media reports said.
Adani Gas' shareholding changes and restructuring violate city gas norms. PNGRB may seek to cancel Adani Gas licences and also levy Rs 400 crore penalty, reports added. Further, PNGRB is also yet to approve Adani Gas' 37.4% stake sale to French energy giant Total SA.
In October 2019, the Adani Group company said that it had signed definitive agreements with Total S.A., a French multinational integrated oil and gas company, to deepen their existing partnership and commitment for developing multi-energy offerings to the Indian energy market.
As part of the deal, Total will first make an open offer to buy a 25.2% stake in Adani Gas. Depending upon the success in the open offer, it will buy a stake from Adani to take its holding to 37.4% in the company. Adani family, which holds a 74.8% stake in Adani Gas, will dilute shares to the public to bring down its holding to 37.4%, at par with Total.
Meanwhile shares of other city gas distributors were buzzing in trade. Gujarat Gas (up 1.29%), Mahanagar Gas (0.99%) and Indraprastha Gas (up 0.52%) edged higher.
On a consolidated basis, Adani Gas reported 137% jump in net profit to Rs 120.06 crore on 11.7% rise in net sales to Rs 472.57 crore in Q2 September 2019 over Q2 September 2018.
Adani Gas produces and distributes natural gas. The company offers industrial and compressed natural gas (CNG) to commercial, residential, and transports sectors.
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