IGL plunges 8% as PNGRB dismisses Delhi exclusivity rights

NEW DELHI: Shares of Indraprastha Gas plunged over 5 per cent on Friday after Petroleum & Natural Gas Regulatory Board (PNGRB) dismissed IGL's exclusivity over the Delhi market.

Reacting to the development, the stock slipped 8.11 per cent to hit a low of Rs 517.55 on the BSE.

The city gas distribution company had exclusive rights to distribute natural gas in the city under Section 16 of the Petroleum and Natural Gas Regulatory Board (PNGRB) Act.

PNGRB regulations provide for marketing exclusivity of three years for companies present in a city prior to the regulations and of five years for new ones. With the PNGRB dismissing the company's monopoly rights in the city, it would allow other players to enter the lucrative gas distribution market of the city hurting IGL's market share.