Indraprastha Gas share price rises 4%: To consider bonus shares issue on 10 Dec

Stock Market Today: Indraprastha Gas share price gained up to 4% in the morning trades on Thursday : The board meeting of company is scheduled for 10 December to consider bonus share issuance

The Indraprastha Gas share price opened at ₹374.80 on the BSE on Thursday, more than 4% higher than the previous closing price of ₹360.30 on Wednesday. The Indraprastha Gas share price oscilated between intraday highs of ₹374.800 and lows of ₹360.60 theerafter

To consider Bonus Issue

Indraprastha Gas in its release on the exchanges on Wednesday, post market hours said that a meeting of the Board of Directors is scheduled to be held on December 10, 2024, to consider the proposal for issue of Bonus Shares to the equity shareholders of the Company.

The Bonus share ratio is yet to be fixed and will be subject to the Shareholders' approval. The company also will therafter intimate on the record date.

The Trading window for dealing in the shares of the Company however will remain closed with effect from December 04, 2024, till the expiry of 48 hours from declaration of outcome of the aforesaid Board Meeting

Fundamental analyst views

The Indraprastha Gas share price has been on a decline and is down more than 30% since end September. As concers remain on Compressed Natural gas sales volume growth that may be impacted by rising Electric Vehicle penetration, the lower allocation of cheaper gas under Administered price mechanism or the APP gas to City Gas Distributors may also impact company's profitability. The Inability to pass on higher gas prices and the regulator's plans for third-party access in current geographies is among other concerns raised by analysts.

Those at Elara Securities India Pvt Ltd had said that every Re 1 per standard cubic meter or scm decline in CNG margin would hit Indraprastha Gas’s FY26 Ebitda estimates by 7%.

Jefferies too had cut FY25-26 estimates by 16-27% for Indraprastha Gas with Hold ratings on the stock

However on positive side a latest data by Antique Stock Broking highlights that in November, on YoY basis, Indraprastha Gas's sales increased by 9% even as CNG vehicle registrations normalize after hitting a record high driven by the festive season in the previous month. Analysts at Antique Stock Broking who also have Hold rating on stock said that IGL's adoption rate remained stable at 28.2% and was close to record highs.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.