On Tuesday, December 10, the Board of Directors of Indraprastha Gas Ltd (IGL), a prominent city gas distributor (CGD), will convene to discuss issuing bonus shares. A regulatory filing states that, with shareholder approval, the business will determine the bonus share ratio and other pertinent information.
The price of IGL’s shares was up 1.56% at ₹391.65 on the BSE at 10:53 a.m. on December 10. In intraday trading, the stock increased by as much as 2.2%, reaching a high of ₹394.30 per share for the day. According to the BSE, the company has a market capitalization of ₹27,416 crore.
The city gas distributor will be contemplating a bonus share issue for its shareholders for the first time.
“The 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,” the company said in an exchange filing on Wednesday, December 4.
IGL Q2 results
In the second quarter of FY25 (Q2FY25), IGL’s sales volume increased by 9%. During the same period last year, average daily sales increased from 8.30 million metric standard cubic meters per day (mmscmd) to 9.03 mmscmd.
According to the unaudited financial data for the quarter ended September 2024, both the CNG and piped natural gas (PNG) segments had a 9% increase in sales over Q2 of FY24. Of the PNG categories, the industrial and commercial segments climbed by 11%, while the home category saw a noteworthy 12% growth.
Comparing the first quarter of FY25 to this quarter, IGL’s total gross sales value increased 7% sequentially to ₹4,069.83 crore from ₹3,804.35 crore. The company’s profit after tax (PAT) increased from ₹401.45 crore in Q1 FY25 to ₹431.09 crore, a 7.4% sequential increase. But on an annual basis, PAT decreased from ₹534.81 crore reported in Q2 FY24, mostly as a result of a sharp increase in input gas prices.
The Board of the firm also declared an interim dividend of 275%, or ₹5.50 per share, which was in line with the quarter’s impressive performance measures.
