Ahmedabad, March 11 (IANS) Shares of Adani Total Gas surged 20 per cent to hit the upper circuit on Wednesday, extending gains even as India faces a deepening natural gas supply crunch.
The sharp rally came after the company said domestic piped natural gas (PNG) and compressed natural gas (CNG) used for transport have received priority allocation under a recent order by the Indian Government.
The stock also witnessed heavy trading activity during the session. Average volumes at the counter jumped more than 20 times, with a combined 16.44 million shares changing hands on the National Stock Exchange of India and the BSE.
The company operates in the city gas distribution business, supplying natural gas to domestic, commercial, industrial and vehicle users.
Other gas stocks also followed suit and surged during intra-day trade despite market sell-off.
Gujarat Gas jumped nearly 12 pc to Rs 420 and end 3.96 per cent higher at Rs 390 during the session.
Petronet LNG, GAIL (India), Indraprastha Gas (IGL) and Mahanagar Gas (MGL) are the other gas-linked companies which saw buying during the session and end higher up to 2 per cent.
Apart from its core operations, Adani Total Gas is also exploring opportunities in areas such as bio-gas, bio-fuel, biomass, liquefied compressed natural gas, hydrogen-enriched compressed natural gas, electric vehicles and hydrogen-related businesses.
In a regulatory filing, Adani Total Gas said that escalating geopolitical tensions in the Middle East have led some of its gas suppliers to curtail supplies.
This has affected the company’s ability to provide gas to certain industrial customers.
The company said it appreciates the government’s quick action in issuing the order and prioritising gas supply for domestic PNG and CNG users, as well as supplies for industrial and commercial customers.
“The Company appreciates the Government’s prompt efforts in bringing out the said order and according priority for the gas supplies to Domestic PNG and CNG customers, as well as supply of PNG to Industrial and Commercial Customers,” it said.
–IANS
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