GAIL (India) rose 1.43% to Rs 369.25 at 9:45 IST on BSE after the company signed a memorandum of understanding with Silicon Valley-based Bloom Energy to generate power with clean and reliable energy.
The announcement was made after market hours yesterday, 22 August 2016.
Meanwhile, the S&P BSE Sensex was down 31.71 points or 0.11% at 27,955.62.
On BSE, so far 19,701 shares were traded in the counter as against average daily volume of 1.27 lakh shares in the past one quarter. The stock hit a high of Rs 370.15 and a low of Rs 364.50 so far during the trading session. The stock had 52-week high of Rs 403 on 4 July 2016. The stock had hit 52-week low of Rs 260.25 on 25 August 2015. The stock had underperformed the market over the past one month till 22 August 2016, sliding 7.85% compared with the Sensex’s 0.66% rise. The scrip had also underperformed the market in past one quarter, dropping 1.89% as against the Sensex’s 10.61% rise.
The large-cap firm has equity capital of Rs 1268.48 crore. Face value per share is Rs 10.
GAIL (India) said that it has signed a memorandum of understanding (MoU) with Bloom Energy to deploy revolutionary natural gas-based fuel cell technology to generate electricity. GAIL (India) said that the solid oxide fuel cell (SOFC) technology of Bloom Energy Servers convert fuel into electricity using natural gas as the base fuel to generate reliable and resilient electricity in a highly efficient non-combustible process that reduces emissions of greenhouse gas and harmful air pollutants, with minimal use of water vis-vis the conventional power producing technologies. The Bloom Energy Servers could be installed onsite at any operating premises or building and can be plugged into natural gas pipeline to generate uninterrupted, efficient, noise-less base load power round-the-clock.
GAIL’s subsidiary at Bengaluru is already supplying natural gas for energizing a multi-MW Bloom Energy project for a large global technology company at the Technology Park in Bangalore.
The unique tie-up seeks to leverage the strengths of both the organizations. Whilst GAIL brings a portfolio of natural gas to ensure reliable and competitively available natural gas for Bloom Energy projects along its integrated gas supply networks, Bloom Energy’s power systems run on advanced solid oxide fuel cell technology that are not just acknowledged as the most efficient producers of electricity based on natural gas but also combines the advantage of requiring a tenth of the space required for generating equivalent power through other modes. The MoU provides an alignment of a shared vision between GAIL and Bloom Energy and opens up an opportunity for Indian consumers to experience bundled and reliable service by the two leading brands for expanding the distributed power generation systems in India.
GAIL (India)’s net profit 50.8% to Rs 769.99 crore on 18.3% decline net sales to Rs 11627.20 crore in Q4 March 2016 over Q4 March 2015.
State-run GAIL (India) is India’s largest natural gas company with a market share of over 80% in natural gas transmission. Apart from natural gas transmission, distribution and processing, GAIL has diversified business interests in LPG transmission, petrochemicals, city gas projects and exploration and production activities. Government of India (GoI) holds 56.11% stake in GAIL (as per shareholding pattern as on 30 June 2016).