New Delhi: Adani Gas Ltd. surged the most in nearly two months after India’s top court nullified orders restricting its network expansion.
Shares jumped as much as 6.8 percent to 94.55 rupees, the biggest intraday gain since December 5, before paring its advance to 3.4 percent as of 12:16 p.m. in Mumbai. The benchmark NSE Nifty 50 index was little changed.
A two-judge Supreme Court bench headed by Arun Mishra on Tuesday quashed two orders restraining the company from laying gas pipelines in western cities of Jaipur and Udaipur in the state of Rajasthan.
It’s unclear though how much the ruling could add to Adani’s gas retailing plans, as both Jaipur and Udaipur areas were bid out last year in auctions. Prime Minister Narendra Modi’s administration is aiming to increase use of cleaner energy, including natural gas, to curb deadly air pollution that’s choking most of urban India.
The court also on Tuesday asked that the Petroleum & Natural Gas Regulatory Board, which had halted Adani’s plans in the two cities in 2011, take a fresh decision on the matter.
Adani Gas won bids to supply gas to six areas last year, while its joint-venture with state-run refiner Indian Oil Corp. Ltd. won five licenses. It plans to invest 80 billion rupees ($1.1 billion) in its gas retailing business in the next five years, it said in a November filing.
This story has been published from a wire agency feed without modifications to the text.