GAIL hits three-month low; stock slips 10% on heavy volumes

Shares of GAIL (India) hit an over three-month low of Rs 323, down 10 per cent, in intra-day trade on the BSE on the back of heavy volumes. The stock was quoting at its lowest level since February 26, 2019.

The trading volumes on the counter jumped over three-fold with a combined 14.7 million shares changing hands on the NSE and BSE till 10:50 am.

In orders dated June 4, 2019, the Petroleum and Natural Gas Regulatory Board (PNGRB) declared revised levelized tariffs for GAIL's Hazira-Vijaipur-Jagdishpur (HVJ) & Dahej-Vijaipur (DVPL) and Vijaipur-Dadri (GREP) Up-gradation (HVJ Upgradation) pipeline system and Mumbai Regional Natural Gas Pipeline Network (MRNGPN).

The tariff order reveals that against a wider expectation of increase in the tariffs of HVJ system, the revised tariffs on 'levelized' & 'integrated' basis are more or less same as what GAIL has been charging. As a result the blended tariff assumptions for FY20 and FY21, where the brokerage firm modelled for 10 per cent increase over FY19, stand revised downwards to around 4 per cent increment, they said.

Meanwhile, according to an Economic Times report, the government has started work on restructuring state-owned companies and on the immediate agenda is the bifurcation of GAIL (India) into marketing and transportation units — one of them to be sold.

Indian Oil Corporation, the state-owned refiner, had evinced interest in natural gas processing and distribution company GAIL last year, and may be a potential buyer, the report said, quoting an official.