Shares of GAIL saw a sharp bump in the afternoon hours of trading as the company announced signing an MoU with Shell Energy.
What Happened: The public service undertaking on Friday announced signing a Memorandum of Understanding with Shell Energy India to explore prospects in the import and handling of different hydrocarbons and infrastructure development for ethane sourcing.
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In a regulatory filing the company said that in a bid towards diversification of the feedstock for its petrochemical plant, it is looking to import “ethane from ethane-surplus countries with matured export terminal infrastructure.” The company plans to import these through water borne transportation to India and transport it further through GAIL’s pipeline systems to demand centres.
The company’s shares bumped as soon as the announcement made headlines at around 1:30 pm. However, the stock simmered down in the late hours of trading on Friday.
Price Action: GAIL shares were up 0.46% to trade at ₹110.10 on Friday afternoon.
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