IGL zooms on SC verdict

Indraprastha Gas Ltd (IGL) is showing a lot of action today. It first breached the upper circuit at Rs.459.55. And volumes are up 15 times – some 6 lakh shares were traded in the morning alone  while the two-week average stood at 29,000 shares.

The market was awaiting the decision the Supreme Court decision on the ongoing tiff with Petroleum and Natural Gas Regulatory Board (PNGRB) order that sought to regulate price. The decision came in and the SC upheld the verdict Of the Delhi High Court. The apex court ruled that PNGRB cannot set the tariff for IGL. The court said that it finds no merit in the PNGRB plea to control prices.

The Govt had also indicated that it is with the Delhi Court decision and backs IGL, stating that PNGRB is not empowered to determine retail prices. This decision of the SC now means that IGL is free it decide the pricing, based on its cost structure and not ruled by the PNGRB.