City Gas Distribution (CGD) firms like Indraprastha Gas (IGL) and Mahanagar Gas (MGL) experienced a decline in their stock prices on Friday, October 20th, following the Delhi government’s approval of the electric vehicle (EV) policy for ride-sharing and delivery services. Jefferies reports that this decision could potentially affect 30% of IGL’s total sales volumes starting in FY 25. Consequently, Jefferies has downgraded IGL’s FY25/26 EPS by 7/9%, citing the need to incorporate the increasing EV-related risks into their valuation model.

The impact of this news has led to a decrease in IGL’s share prices, which has resulted in a breach of its long-term demand.