On Wednesday, December 4, Indraprastha Gas Ltd (IGL), a prominent city gas distributor (CGD), declared that at its next board meeting on December 10, 2024, it will contemplate releasing a bonus issue of shares. At the next meeting, the IGL board is anticipated to decide on the bonus issue’s record date.
鈥淭his is to inform you that a meeting of the Board of Directors is scheduled to be held on December 10, 2024, inter-alia to consider the proposal for the issue of Bonus Shares to the equity shareholders of the Company in the ratio, as may be fixed, subject to the Shareholders’ approval,鈥� said IGL in a regulatory filing to the stock exchanges on Wednesday, December 4.
鈥淭rading window for dealing in the shares of the Company will remain closed with effect from December 04, 2024, till the expiry of 48 hours from declaration of the outcome of the aforesaid Board Meeting,鈥� added IGL.
Since Nov. 9, 2017, IGL has split the face value once. One share of 鈧�10 was divided into five shares of 鈧�2 each in 2017, the last time it changed the face value of its shares from 鈧�10 to 鈧�2. Since November 9, 2017, the share has been quoted ex-split. IGL will be issuing bonus shares to its shareholders for the first time; no bonus issue has been disclosed.
IGL, which delivers piped cooking gas to homes in the nation’s capital and surrounding areas and retails compressed natural gas (CNG) to cars, said last month that domestic supplies had been reduced by roughly 20% as of November 16.
Prior to October 16, supply had been reduced by roughly 21%. To meet the need for CNG sales volumes, IGL receives domestic gas allocation at the government-fixed price, which is now USD 6.5 per million British thermal units.
It is anticipated that the updated allocation will have a major effect on IGL’s operations, especially its capacity to satisfy CNG sales levels. Using imported gas, which costs twice as much as domestic gas, is the alternative. When IGL stated last month that “the company is exploring all options to address the issue,”
On November 25, IGL increased the price of CNG by 鈧�2 per kilogram. Noida, Greater Noida, Ghaziabad, Gurugram, and other areas saw price increases, but Delhi, which will hold elections in a few weeks, was exempt. According to the IGL website, CNG prices have increased by 鈧�2 per kg to 鈧�81.70 in Noida, Greater Noida, and Ghaziabad and to 鈧�82.12 per kg in Gurugram, with effect from November 23. In Delhi, the rates have remained constant at 鈧�75.09 per kg.
IGL Q2 Results
IGL’s standalone net profit for the second quarter of fiscal year 2024鈥�2025 dropped 19.4% to 鈧�431 crore. IGL reported a 鈧�535 crore net profit for the same time last year. But, with a 鈧�401 crore profit in the quarter that ended on June 30, net profit grew 7.4% sequentially.
IGL generated 鈧�4,088 crore in operating revenue during the reviewed quarter, a 7% increase over the 鈧�3,822 crore earned during the same period the previous year. The board of directors announced a 鈧�5.50 interim dividend per share.
At 9.03 mmscmd (million metric standard cubic meters per day), IGL’s total volume showed a 9% increase over the previous year. At 623.65 million scm, CNG volumes increased by 9% year over year, and household and industrial/commercial PNG quantities increased by 12% and 11% annually, respectively.
After acquiring the Delhi City Gas Distribution Project from GAIL (India) Limited (formerly known as the Gas Authority of India Limited) in 1999, IGL was founded in 1998. The project began establishing the natural gas distribution network for residential, commercial, and transportation users in Delhi’s National Capital Territory (NCT).
IGL is a joint venture between the Delhi government, oil marketing firm Bharat Petroleum Corp Ltd (BPCL), and central gas utility GAIL. Together, these parties own 50% of the business.
