Indraprastha Gas, MGL Shares Tumble Over 10% After Delhi Govt Gives Nod To EV Policy

The share price of Shares of City Gas Distribution companies Indraprastha Gas (IGL) and Mahanagar Gas (MGL) tumbled over 10% during the intraday trading on Friday after the Delhi government gave nod to the electric vehicle (EV) policy for cab aggregators and delivery service providers.

Indraprastha Gas Ltd shares were seen trading 12% lower at Rs 402.55 per share at 2:50 pm IST today. The share price of Indraprastha Gas Ltd has a 52 Wk High and 52 Wk Low of Rs 515.55 and Rs 373.45 per share.

Today's selloff in IGL shares was also seen after global brokerage house Jefferies downgraded IGL and cut its target price.

The Delhi government has proposed an EV transition policy for cab aggregators, delivery services, and e-commerce companies. The Lieutenant Governor's approval is still awaited. The policy requires a gradual shift to electric vehicles, with 50% of new purchases being electric within three years and 100% within five years from the notification date.

Jefferies has downgraded the stock to the 'hold' category and cut its target price to Rs 465, up 14%. According to Jefferies, this could impact 30% of IGL's overall sales volumes starting FY25.

It has also downgraded FY25/26 EPS by 7/9% adding that lower valuation multiple will factor in growing EV risk.

The share price of Mahanagar Gas Ltd fell 8.24% at Rs 1030.95 per share at 3:07 pm IST. The share price of Mahanagar Gas Ltd has a 52 Wk High and 52 Wk Low of Rs 1,151.85 and Rs 773.30 per share.