Gujarat Gas shares rallied as much as 10.11 per cent in the early trade on Tuesday after the company on Monday informed bourses that it has received permission to build, operate, or expand city or local natural gas distribution network for the geographical area of Ahmedabad District.
At 10 am, shares of Gujarat Gas were trading 7.72 per cent up at Rs 562.35. The scrip opened at Rs 550.05 and has touched a high and low of Rs 547.85 and Rs 550.05, respectively, in trade so far. Sensex was trading 51.73 points up at 26454.69.
According to a letter by The Petroleum and Natural Gas Regulatory Board (PNGRB) to Gujarat Gas, the authorisation area for laying, builing, operating or expanding the proposed city gas distribution (CGD) network will cover an area of 5,760.41 square km and the activities for the proposed CGD network to commence within a period of 270 days from the date of the authorisation.
Gujarat Gas will provide natural gas, to urban regions in the district excluding Ahmedabad city areas. According to reports, the company will supply natural gas, both piped natural gas (PNG) and compressed natural gas (CNG), to residential, commercial and industrial consumers in urban centres like Sanand, Viramgam, Bavla, Dholka, Dhandhuka, Mandal and Detroj-Rampura.