Shares of Indraprastha Gas (IGL) surged by 2.2 per cent in Tuesday’s trade, following the approval by its board for an increase in authorized share capital and a 1:1 bonus share issuance.

Bonus issue details

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The company announced the issuance of bonus shares in a 1:1 ratio, meaning that for every existing share of Rs 2 face value, shareholders will receive one additional share. This move, expected to distribute profits in the form of additional equity, aims to reward existing shareholders without the outflow of cash. The bonus shares will be issued within two months, with the deadline set for February 9, 2025.

Share capital update 

IGL's board also approved a substantial increase in the company’s authorized share capital. The current capital of Rs 22 crore, divided into 110 million shares of Rs 2 each, will rise to Rs 1,000 crore, which will be divided into 5,000 million equity shares of Rs 2 each.

Market performance

By 2:35 PM, IGL shares were up 1.65 per cent at Rs 392 on the Bombay Stock Exchange (BSE), outperforming the BSE Sensex, which was down by 0.28 per cent at 81,282.53. The company’s market capitalization stood at Rs 27,447.03 crore. Over the past year, however, IGL shares have lost 1.8 per cent, while the Sensex gained 16.5%.

IGL is a leading natural gas distribution company in India, focused on supplying compressed natural gas (CNG) and piped natural gas (PNG) to residential, commercial, and industrial consumers. Established in 1998, it is a joint venture between GAIL (India) Ltd., BPCL, and the Delhi Government.