Gujarat Gas spikes up

Gujarat Gas is up in the green today morning, up 4% at rs.206.50 and this is after the stock having hit an intra day high at Rs.216.55. Volumes remain muted at less than 10,000 shares.  Market cap stands at Rs.2648 crore.

The stock is up after the company announced that it has signed an MoU with Gujarat State Petroleum Corporation Limited (GSPC) on the September 03, 2013 for a long term gas supply deal. As per the MoU, GSPC has agreed to supply 0.85 mmscm of gas per day to GGCL from January 01, 2014 to June 30, 2025. Price of gas will be determined in the relevant Gas Sales Contracts (GSC) and it is expected to be formula based.

The MoU is effective till the December 31, 2013 or the signing of the relevant GSCs, whichever is earlier.