GAIL shares surge as company revives PTA manufacturing project

GAIL (India) Limited witnessed a 2.1% rise in its share price on the BSE during Thursday's trade, reaching an intraday high of ₹199.15. The surge in share price followed the announcement of GAIL's renewed engagement with INEOS, a global process licensor, to revitalise its purified terephthalic acid (PTA) manufacturing plant. PTA is a critical raw material for producing polyester fibres, plastics, and films, making this move strategically significant for India's petrochemical sector.

By 1:09 PM, the stock pared some gains but remained 0.72% higher at ₹196.4, even as the BSE Sensex dropped 1.28%. This performance highlights the market's confidence in GAIL's efforts, with its market capitalisation standing at ₹1,29,134.96 crore.

Reviving GMPL's PTA plant

GAIL's revitalisation efforts focus on its 1.25 MMTPA PTA manufacturing plant located in the Special Economic Zone (SEZ) in Mangalore. The project is being led by GAIL Mangalore Petrochemicals Limited (GMPL), a wholly owned subsidiary of GAIL. The renewed collaboration with INEOS formalised through an Amendment Agreement, underscores the company's commitment to overcoming legacy challenges and achieving operational stability.

The acquisition of JBF through the Corporate Insolvency Resolution Process (CIRP) in June 2023 has provided GAIL with a platform to strengthen its presence in the petrochemical market. According to R.K. Singhal, Director of GAIL, the successful realisation of this project is poised to reduce India's import burden and position GMPL as a domestic leader in the PTA market.

Share market investment insights

For investors considering share market investment, GAIL's performance over the past year has been impressive, with shares gaining 59% compared to the Sensex's 21% rise. The company's strategic initiatives in the petrochemical segment, coupled with its robust natural gas operations, make it an appealing choice for those exploring long-term growth opportunities in the energy sector.

Key takeaways

• GAIL's share price climbed 2.1%, peaking at ₹199.15 on BSE.
• The company is focused on revitalising its PTA manufacturing plant through a partnership with INEOS.
• GAIL's strategic moves align with reducing import dependence and boosting domestic petrochemical manufacturing.
• For share market investment, GAIL offers a promising avenue, showcasing a 59% growth over the past year.