Indraprastha Gas Ltd (IGL) shares fell 10% after the company announced a 20% reduction in GAIL’s gas allotment beginning November 16, 2024. This cut reduces IGL’s overall gas allocation to 46%, down from 70% just last month.
The sharp decline in allocation is expected to hit IGL’s operations, particularly its ability to meet Compressed Natural Gas (CNG) sales volumes.
In the exchange filing, the company shared, “The revised domestic gas allocation to the Company is approx. 20% lesser than previous allocation which will have an adverse impact on profitability.”
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