MGL, IGL & Adani Total shares tumble up to 6% on APM gas allocation cut; details here

Shares of city gas distribution companies such as Mahanagar Gas Ltd (MGL), Indraprastha Gas Ltd (IGL) and Adani Total Gas Ltd slumped in Wednesday's trade following a further reduction in domestic gas allocation.

MGL shares felt most of the pain as the counter dived 6.45 per cent to hit a day low of Rs 1,231. "Allocation of APM (Administrative Price Mechanism) to the company has been reduced by 18 per cent, effective April 16, 2025, compared to previous fortnight APM allocation. Reduction of APM volume has been replaced with New Well/Well Intervention gas (NWG). This will have an adverse impact on the profitability, however, the Company is in the process of exploring all measures to mitigate the impact," Mahanagar Gas stated in a BSE filing.

Shares of IGL slipped 3.86 per cent to hit a low of Rs 172 after mentioning its revised domestic gas allocation is approximately 20 per cent less than the previous allocation.

Adani Total shares fell 1.48 per cent to Rs 602.20 level. The company said has been intimated for a reduction of APM gas allocation by 15 per cent.

Both IGL and Adani Total also underscored that the allocation cut will have an adverse impact on their profitability.

The step has been taken as per the policy guideline issued by the Ministry of Petroleum and Natural Gas. In line with this policy, the companies were allocated APM natural gas for Domestic PNG and CNG (Transport) based on gas availability.

Further, these city gas distribution firms also informed bourses that they are in the process of exploring all measures to mitigate the APM allocation reduction impact.

Meanwhile, Indian equity benchmarks were trading almost flat today, taking a breather from their two-session sharp recovery mode. However, broader indices continued to climb.