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IGL-MGL Share Price: Shares of city gas distributor (CGD) companies Indraprastha Gas Limited (IGL) and Mahanagar Gas Limited (MGL) fell by more than 18 percent in Monday's trading. In fact, APM gas allotment has decreased for the second time in a month. Meanwhile, the share price of Gujarat Gas also fell by about 6 percent. It is believed that IGL may suffer a bigger blow because its share in the volume of the primary sector is higher. IGL's base margin is also lower than that of MGL.
And what are the reasons for the decline
Gujarat Gas is more focused on the industrial segment, due to which it has a share of less than 40 percent in the primary sector volumes. This is less than the share of more than 80 percent of both IGL and MGL.
Apart from this, the main sources of sourcing Gujarat gas are spot and contract LNG.
At what price did the shares come ( around 10:15 am on BSE )
- IGL: down Rs 75.95 or 18.71 per cent to Rs 330
- MGL: down Rs 175.65 or 13.39 percent to Rs 1,135.75
- Gujarat Gas: down Rs 28.75 or 5.91 percent to Rs 457.45
How much did APM allocation decrease
The government has cut the APM gas allocation to these companies by 20% over the weekend. The total Administered Price Mechanism (APM) gas availability for these companies is now between 40% and 45%, down from 65% to 70% a month ago. This figure was 154% in FY21.
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