Gujarat Gas surges 5% after PNGRB approves transfer of GSPL's two geographical areas under its ambit

Investors were upbeat after the company received the approval of Gujarat State Petronet Limited (GSPL) proposal to transfer two of its geographical areas.

Jun 30, 2020 03:06 IST India Infoline News Service

The investors tapped Gujarat Gas stock on Tuesday, to an extent that the company soared by nearly 5% with an intraday high of Rs324.35 per piece on Sensex. Investors were upbeat after the company received the approval of Gujarat State Petronet Limited (GSPL) proposal to transfer two of its geographical areas.

In a notification, Gujarat Gas says, "According to Regulation 30 of the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015, we are pleased to inform that Petroleum and Natural Gas Regulatory Board (PNGRB) has, vide letters dated 29th June 2020, accepted the proposal for transfer of Authorization of Amritsar District GA (Geographical Area) and Bhatinda District GA from GSPL to Gujarat Gas Limited (GGL). The company is required to submit revised Financial closure, Gas Supply Agreement and PBG to PNGRB to complete the process of transfer."

Further, the PNGRB has permitted the company to take over activities of laying, building, operating or expanding CGD network of Amritsar District GA (Geographical Area) and Bhatinda District GA.

At around 3.03, the Gujarat Gas stock was trading at Rs318.70 per piece up by 3% on Sensex. While GSPL stock was performing at Rs220.70 per piece up by 2% on the same index.

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