IGL Bonus Issue: CGD Indraprastha Gas board to consider free issue of shares; record date to be fixed on THIS day
- IGL Bonus Issue: CGD Indraprastha Gas Ltd's board will consider issuing a free issue of shares at the board meeting on December 10, 2024.
IGL Bonus Issue: Leading city gas distributor (CGD) Indraprastha Gas Ltd (IGL) announced on Wednesday, December 4, that it will consider issuing a bonus issue of shares at its upcoming board meeting on December 10, 2024. IGL's board is expected to finalise the record date of the bonus issue in the upcoming meeting.
“This is to inform you that a meeting of the Board of Directors is scheduled to be held on December 10, 2024, inter-alia to consider the proposal for the issue of Bonus Shares to the equity shareholders of the Company in the ratio, as may be fixed, subject to the Shareholders' approval,” said IGL in a regulatory filing to the stock exchanges on Wednesday, December 4.
“Trading window for dealing in the shares of the Company will remain closed with effect from December 04, 2024, till the expiry of 48 hours from declaration of the outcome of the aforesaid Board Meeting,” added IGL.
IGL Corporate Action, CNG Prices
IGL has split the face value once since November 9, 2017. It last split the face value of its shares from ₹10 to ₹2 in 2017, which means it split one share of ₹10 into five shares of ₹2 each. The share has been quoted on an ex-split basis since November 9, 2017. IGL has not announced a bonus issue; this will be its first time issuing bonus shares to its shareholders.
Last month, IGL, which retails Compressed Natural Gas (CNG) to automobiles and piped cooking gas to households in the national capital and adjoining cities, announced that domestic supplies had been cut by about 20 per cent effective November 16.
Previously, supplies had been cut by about 21 per cent, effective October 16. IGL gets domestic gas allocation to meet the requirement of CNG sales volumes at the government-fixed pricing (presently USD 6.5 per million British thermal unit).
The revised allocation is expected to significantly impact IGL’s operations, particularly its ability to meet CNG sales volumes. The alternative is to use imported gas, which is twice the domestic rate. "The company is exploring all options to address the issue," IGL said last month.
IGL hiked CNG prices by ₹2 per kg on November 25. Prices were hiked in Noida, Greater Noida, Ghaziabad, Gurugram, and other cities, but Delhi, which goes to polls in a few weeks, was spared. While CNG rates in Delhi remain unchanged at ₹75.09 per kg, prices have gone up by ₹2 per kg to ₹81.70 in Noida, Greater Noida, and Ghaziabad and to ₹82.12 per kg in Gurugram with effect from November 23, according to the IGL website.
IGL Q2 Results
IGL reported a 19.4 per cent decline in standalone net profit to ₹431 crore for the second quarter of fiscal year 2024-25. In the year-ago period, IGL posted a net profit of ₹535 crore. However, net profit increased 7.4 per cent sequentially, as it recorded a ₹401 crore profit in the quarter ending June 30.
During the quarter under review, IGL's revenue from operations was ₹4,088 crore, up seven per cent from ₹3,822 crore recorded in the same period last year. The board of directors declared an interim dividend of ₹5.50 per share.
IGL's total volume stood at 9.03 mmscmd (million metric standard cubic meters per day), reporting a nine per cent growth compared to last year. CNG volumes showed nine per cent growth year-on-year at 623.65 million scm, while PNG (domestic) and PNG (industrial/ commercial) witnessed 12 per cent and 11 per cent increases in volumes yearly, respectively.
IGL was incorporated in 1998 when it took over the Delhi City Gas Distribution Project in 1999 from GAIL (India) Limited (Formerly Gas Authority of India Limited). The project started laying the network for distributing natural gas in the National Capital Territory (NCT) of Delhi to domestic, transport, and commercial consumers.
IGL is a joint venture between central gas utility GAIL, oil marketing company Bharat Petroleum Corp Ltd (BPCL), and the Delhi government, who collectively hold a 50 per cent stake in the company.
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