President of India’s portfolio gains Rs 19,81,73,43,275 in a single day from this multibagger stock; scrip hits 52-week high and m-cap crosses Rs 92,000 crore milestone!
Rs 15,000 crore, against SEFE Marketing & Trading Singapore in the London Court of International Arbitration.
In a resounding "Hat-Trick," the Bharatiya Janata Party (BJP) clinched victory in the State Elections, and the echoes of this triumph reverberated through the market with anticipations of a potential "Hat-Trick" in the 2024 General Election. The consequence was a sweeping surge in key benchmark indices, catapulting them to fresh all-time highs with gains exceeding 2 per cent. Notably, the performance of Bank Nifty was striking, surging by over 3.5 per cent and settling above the formidable 46,400 mark.
Among the sectors, the Nifty PSE index stole the spotlight, witnessing a remarkable 3 per cent surge on Monday. Within this dynamic landscape, one stock that stood out amidst the bustling bourses was Gail (India) Ltd.
Gail recorded an impressive surge of over 4 per cent, marking a fresh 52-week high at Rs 145.10. This robust upswing propelled the market capitalization of the stock beyond Rs 93,000 crore, a testament to its status as a multibagger stock, having escalated by more than 200 per cent from the lows of March 2020.
The key catalyst igniting this remarkable ascent is GAIL (India) Ltd.'s filing of claims totaling USD 1.8 billion, approximately Rs 15,000 crore, against SEFE Marketing & Trading Singapore in the London Court of International Arbitration. This legal action stems from the non-supply of LNG cargoes to GAIL under a long-term contract, a revelation the company disclosed in its exchange filing on Friday. The claims, up to USD 1.8 billion, encompass alternative reliefs beyond monetary compensations.
The roots of this legal dispute trace back to an agreement between SEFE Marketing and Trading Singapore (formerly Gazprom Marketing and Trading Singapore) and GAIL, wherein the former committed to supplying 2.5 million tonnes of liquefied natural gas annually for 20 years from FY19. However, the long-term gas contract faced disruption in May 2022, amid the Russia-Ukraine crisis. The German government's restriction on the company from obtaining any cargo from Russia impeded the supplies.
Adding a fascinating layer to this narrative is the revelation that the President of India serves as the promoter of Gail (India) Ltd., holding a substantial 51.90 per cent stake in the company, with a share count of 3,387,580,047. In a single day, the stock surged by Rs 5.85 per share, translating to an astounding Rs 19,81,73,43,275 in value appreciation. Truly, a testament to the astonishing dynamics at play in the market.