AHMEDABAD, India — Shares of Adani Total Gas jumped 20 percent on Wednesday, hitting the upper circuit and extending gains after the Indian government prioritized domestic gas allocations amid a growing supply crunch.
The rally followed the company’s announcement that piped natural gas (PNG) for households and compressed natural gas (CNG) used in transportation have been given priority under a recent government order aimed at managing limited natural gas supplies.
The stock also saw unusually heavy trading activity during the session. Average trading volumes surged more than twentyfold, with about 16.44 million shares changing hands across the National Stock Exchange of India and the BSE.
Adani Total Gas operates in the city gas distribution sector, supplying natural gas to residential, commercial, industrial, and vehicle customers.
Other gas-related stocks also gained during the session despite a broader market sell-off. Gujarat Gas rose nearly 12 percent during intraday trading to Rs 420 before closing 3.96 percent higher at Rs 390.
Petronet LNG, GAIL (India), Indraprastha Gas (IGL), and Mahanagar Gas (MGL) also saw buying interest and ended the session with gains of up to 2 percent.
Beyond its core city gas distribution business, Adani Total Gas is expanding into several emerging energy segments, including biogas, biofuels, biomass, liquefied compressed natural gas, hydrogen-enriched CNG, electric vehicles, and hydrogen-related technologies.
In a regulatory filing, the company said escalating geopolitical tensions in the Middle East have prompted some of its gas suppliers to reduce deliveries.
The supply disruption has limited the company’s ability to serve certain industrial customers, the filing noted.
“The Company appreciates the Government’s prompt efforts in bringing out the said order and according priority for the gas supplies to Domestic PNG and CNG customers, as well as supply of PNG to Industrial and Commercial Customers,” the company said. (Source: IANS)
