The Delhi High Court has ruled in favour of Indraprastha Gas that government regulator Petroleum and Natural Gas Regulatory Board (PNGRB) does not have the authority to fix tariffs. Reacting to the development, IGL surged 29% to close at Rs 249.35 on the BSE.
The Delhi High Court has quashed PNGRB's April 9 order.
In that order PNGRB had lowered IGL's tariffs by over 60% and directed it to enforce this retrospectively from April 2008. Today the Delhi High Court said that IGL will not have to retrospectively refund customers, that could have led to an outgo of Rs1600 cr and make its networth negative.
Sources say IGL is "120%" confident the PNGRB will approach the SC and therefore it is planning to file a caveat at the apex court in the coming days
IGL stock price
On November 27, 2015, Indraprastha Gas closed at Rs 471.25, down Rs 9.65, or 2.01 percent. The 52-week high of the share was Rs 523.00 and the 52-week low was Rs 376.00.
The company's trailing 12-month (TTM) EPS was at Rs 29.11 per share as per the quarter ended September 2015. The stock's price-to-earnings (P/E) ratio was 16.19. The latest book value of the company is Rs 149.87 per share. At current value, the price-to-book value of the company is 3.14.
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