GAIL (India) rose 0.27% to Rs 346.80 at 12:22 IST on BSE after the company said it has reduced its stake in China Gas Holdings.
The company made the announcement during trading hours today, 30 October 2013.
Meanwhile, the BSE Sensex was up 49.59 points, or 0.24%, to 20,978.60.
On BSE, 18,000 shares were traded in the counter compared with average volume of 88,127 shares in the past one quarter.
The stock hit a high of Rs 350.25 and a low of Rs 344.90 so far during the day. The stock hit a 52-week high of Rs 395 on 18 January 2013. The stock hit a 52-week low of Rs 273 on 28 August 2013.
The stock had underperformed the market over the past one month till 29 October 2013, rising 5.96% compared with the Sensex's 6.09% rise. The scrip had, however, outperformed the market in past one quarter, rising 9.05% as against Sensex's 6.82% rise.
The large-cap company has an equity capital of Rs 1268.48 crore. Face value per share is Rs 10.
GAIL (India) said it has sold 60 million shares out of 210 million shares held in China Gas Holdings at HK$8.20 per share.
Further, GAIL said that the Ministry of Petroleum & Natural Gas vide letter dated 25 October 2013 informed that under-recovery burden on GAIL for the financial year 2013-14 is provisionally fixed at Rs 1400 crore.
GAIL has provided a provisional discount of Rs 1398.68 crore to public sector oil marketing companies (PSU OMCs) in the first half of the year ended March 2014 (H1 - 2014).
Based on the provisional estimate issued by the Petroleum Ministry, the under-recovery burden on GAIL works out to just Rs 1.32 crore for the second half of the year ended March 2014 (H2 - 2014).
In terms of the decision of the Government of India to share the under recoveries on LPG with PSU OMCs, GAIL provided provisional discount of Rs 1398.68 crore in H1 - 2014, lower than the discount of Rs 1485.67 crore in H1 - 2013.
The company provided provisional discount of Rs 698.68 crore in Q2 September 2013, lower than the discount of Rs 785.67 crore in Q2 September 2012.
PSU OMCs -- BPCL, HPCL and Indian Oil Corporation -- suffer revenue loss on domestic sale of diesel, LPG and kerosene at a controlled price (The government decontrolled pricing of petrol in 2010). The government compensates these state-run oil marketing firms for their under-recoveries through oil bonds. The rest of the cost-price gap is borne by three state-run oil and gas firms -- GAIL (India), ONGC and Oil India.
As per the report, GAIL had been demanding exemption from sharing subsidy because it was not an upstream company and unlike them it does not gain from any jump in global oil and gas prices.
GAIL (India)'s net profit fell 7.07% to Rs 915.67 crore on 21.95% increase in total income to Rs 14224.37 crore in Q2 September 2013 over Q2 September 2012.
GAIL (India) is India's flagship gas transmission and marketing company with global footprints. The Government of India (GoI) holds 57.34% stake in GAIL (India) (as per the shareholding pattern as on 30 September 2013).
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