Indraprastha Gas Limited (IGL) shares fell by more than 6% in early trading today following the announcement of a significant reduction in its domestic gas allocation. GAIL (India) Ltd. has reduced IGL’s allocation of domestic gas by 21%, effective from October 16, 2024. This reduction is expected to impact IGL’s profitability, as the company relies on domestic gas to meet its compressed natural gas (CNG) sales needs at government-regulated prices.
IGL is currently engaging with key stakeholders to find ways to minimize the impact of this gas supply reduction on its financial performance. The company is working to mitigate the potential hit to its profitability, although the immediate effects are likely to be seen in the upcoming quarters.
As of 9:16 am, IGL shares were down 6.225%, trading at ₹473.15 on the NSE.
