Shares of Adani Total Gas Ltd. (ATGL) were locked in the upper circuit on Wednesday despite weakness in the broader market, after the government issued a notification, prioritising gas allocation to key sectors.
In its regulatory filing, Adani Total Gas said that recent geopolitical developments in the Middle East have led some of its gas suppliers to curtail supply, which has impacted the company's ability to supply gas to certain industrial customers.
The rally in the company's stock followed the government notification, which confirmed that natural gas supply will be prioritised towards key sectors such as domestic households and transportation.
Adani Total Gas, notably, is one of the key providers of domestic piped natural gas (PNG) and compressed natural gas (CNG).
Under the new order, the supply of natural gas to several segments will be treated as priority allocation. These include domestic PNG, and CNG used for transport, LPG production and essential pipeline operational requirements such as compressor fuel.
The government also outlined allocation levels for other sectors based on their past consumption patterns.
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Domestic PNG, CNG, LPG production and pipeline operational needs will continue to receive 100% of their past six-month average gas consumption.
Meanwhile, industries such as tea manufacturing and other industrial consumers will receive around 80% of their past six-month average gas consumption. Fertiliser plants will be ensured 70% of their average gas usage, while oil refiners will receive around 65%.
City gas distribution (CGD) companies have also been directed to ensure that industrial and commercial consumers receive at least 80% of their past six-month average gas consumption.
ATGL said it welcomed the government's move to prioritise gas supply for essential segments such as domestic PNG and CNG consumers.
ATGL said it is coordinating with relevant authorities and stakeholders to manage the impact of the supply disruption.
Adani Total Gas Share Price Today
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The scrip rose as much as 19.99% to Rs 566.90 apiece on Wednesday, highest level since Jan. 8. This compares to a 1.62% decline in the NSE Nifty 50 Index.
Total traded volume so far in the day stood at 49 times its 30-day average. The relative strength index was at 64.8.
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(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)
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