Out of gas

Shares of Indraprastha Gas got beaten out of shape after the oil regulator’s decision to slash tariff rates. Should you bottom-fish?

rude shock jolted investors in Indraprastha Gas, the sole supplier of compressed natural gas (CNG) to Delhi and its suburbs, on the morning of April 10. Minutes after the market opened for trading, IGL’s stock, which had closed at #347 the previous day, crashed by 46% to ₹188 after the Petroleum and Natural Gas Regulatory Board (PNGRB) had asked the company, the previous night, to lower its network tariff and CNG compression charges in Delhi by 60%.