City Gas distributor Indraprastha Gas Ltd to consider free share issue in board meet

The board of Indraprastha Gas Ltd. will meet on December 10 to consider a bonus issue of shares. This is the first time that the company will declare a free share issue for its shareholders. With this, IGL has also become the first among its players to consider a proposal to issue free shares to its shareholders.

Neither of its City Gas peers, Mahanagar Gas (MGL) or Gujarat Gas, had earlier issued bonuses to their shareholders. IGL had earlier split one share with a face value of Rs 10 into five shares of Rs 2 back in 2017. Gujarat Gas too had carried out a similar stock split in 2019. MGL shares still carry a face value of Rs 10.

The board meeting for IGL comes after a sharp correction in its stock price. The stock is down over 35% from its recent peak of Rs 570. While shares of Mahanagar Gas have also corrected 36% from their peak of close to Rs 2,000 per share, Gujarat Gas shares are down nearly 30% from their recent top.

The board meeting for IGL comes after a sharp correction in its stock price. The stock is down over 35% from its recent peak of Rs 570. While shares of Mahanagar Gas have also corrected 36% from their peak of close to Rs 2,000 per share, Gujarat Gas shares are down nearly 30% from their recent top.

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IGL had previously announced a 20% reduction in domestic gas allocation, which took effect on November 16, following a similar decrease in October. In response to this cut, IGL, MGL, and Gujarat Gas raised their prices. However, analysts indicated that the increase would not be sufficient to offset the shortfall. On Wednesday, IGL's shares closed 0.3% lower at Rs 360.2.

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