Adani Total Gas shares dropped by 3% following the announcement of a 13% reduction in its gas supply from GAIL (India), effective from November 16, 2024.
This comes after a 16% cut in October under the Administered Price Mechanism (APM). The company has cautioned that these supply cuts will negatively impact its profitability, causing investor concern.
In a regulatory filing, the company shared, “This reduction impacts the entire City Gas Distribution (CGD) industry. While discussions with key stakeholders are ongoing, this will have an adverse impact on the company’s profitability.”
As of 9:58 am, Adani Total Gas shares were trading 2.80% lower at Rs 664.75 on the NSE.
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