Indraprastha Gas Ltd.(IGL) shares witnessed a sharp rise of more than 6% on the National Stock Exchange after reports indicated that the Delhi government might revise its electric vehicle (EV) policy and provide relaxation in the transition timeline. This uplifted investor sentiment around the stock, which has traded within a narrow range so far this year. On year-to-date basis, the shares of the company have witnessed a marginal rise of over 3%.
On Monday, IGL shares closed the trading session at ₹211.22 price level, up by 6.2% on the NSE.
As per a report by the Hindustan Times, the Delhi government might revise the cab aggregator and delivery service policy introduced by the previous administration under the Aam Aadmi Party (AAP). This might include easing the EV transition timelines.
“We have received inputs from various sections and we are relooking at some of the provisions and targets in the policy. Our aim will be to ensure that it is a comprehensive policy for all sections of people affected by it, especially the commuters and customers who use these services and those employed,” transport minister Pankaj Singh reportedly said.
The previous government’s policy was introduced in 2023, which mandated an all-electric fleet by 2030. As per global brokerage firm Citi, this had negatively impacted IGL’s volume growth outlook.
IGL Shares Outlook
The global brokerage firm stated that a more practical stance on EVs by the new government might benefit IGL, considering that the cab segment accounts for 12–15% of its CNG volumes. Citi has maintained its "Buy" rating on the stock with a target price of ₹250.
On an annual basis, IGL shares have struggled to remain in the green territory, plummeting over 12% on the NSE. IGL shares are currently down by over 25% from their 52-week high level of ₹285.
