GAIL Shares Hit Record High After Arbitration Claim Against Former Gazprom Unit
The matter pertains to non-supply of LNG cargoes to GAIL under a long-term contract with SEFE.
Shares of GAIL (India) Ltd. rose over 5% to hit a record high on Monday after it sued SEFE Marketing & Trading Singapore Pte. for damage caused by the non-supply of LNG.
The company has filed an arbitration claim worth $1.8 billion, or about Rs 15,000 crore, against SEFE Marketing & Trading Singapore Pte., formerly known as Gazprom Marketing and Trading Singapore Pte. Ltd., in the London Court of International Arbitration, according to an exchange filing.
The matter pertains to the non-supply of LNG cargoes to GAIL under a long-term contract with SEFE, the company said. GAIL filed the claim on Nov. 30 in London.
Shares of the company rose as much as 5.62%, the highest since its listing on July 2, 1997, before paring gains to trade 5.59% higher at 10:21 a.m. This compares to a 1.34% advance in the NSE Nifty 50.
The stock has risen 48.98% on a year-to-date basis. Total traded volume so far in the day stood at 9.1% times its 30-day average. The relative strength index was at 80.79.
Of the 31 analysts tracking the company, 24 maintain a 'buy' rating, five recommend a 'hold', and two suggest a 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 1.6%.
