Indraprastha Gas Joins Solar JV with RVUNL, Shares Rise More Than 2%

New Delhi, 2 September 2025 –Indraprastha Gas Limited (NSE: IGL, BSE: 532514) shares rose more than 2% during initial trading hours to ₹215.96 after the company announced that it has entered into a joint venture agreement with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL) for the development of a solar power project in Rajasthan. This is a big step towards IGL’s diversification foray into the renewable space—improving its market positioning and falling in line with national sustainability objectives.

Indraprastha Gas Limited, incorporated in 1998 and listed since December 2003, is a leading city gas distribution company supplying CNG and PNG in Delhi-NCR. The company is a joint venture of GAIL, BPCL, and the Government of NCT of Delhi. It is a constituent of the Nifty Midcap 150 index.

Solar JV with RVUNL Details

The JV, signed on 1 September 2025, makes IGL’s equity share stand at 74, while RVUNL keeps the 26 percent. The board of the JV will have six directors, four of whom are nominated by IGL and two by RVUNL. The initial paid-up capital of the venture is ₹5 lakh, split into 50,000 equity shares of ₹10 each. IGL’s promoter GAIL (India) Ltd had previously signed a similar JV with RVUNL in July 2025, further cementing the strategic fit between the parties.

A significant technical information brought to light by a Rajasthan-based report verifies that the JV will first look to develop a 500 MW solar power plant, demonstrating IGL’s ambition to grow aggressively in the renewable energy space.

Stock Market Performance

As of September 2, 12:13 PM IST, the stock is trading at ₹216.46, up ₹5.53 (2.62%) for the day. It opened at ₹213.25, reached a high of ₹217.50, and a low of ₹211.91. The company’s market capitalisation stands at ₹30,300 crore, with a P/E ratio of 18.21.

Strategic Implications

This venture with RVUNL adds IGL’s presence beyond its main business, which is of city gas distribution, and it represents a significant shift into renewable infrastructure. With Rajasthan’s high solar potential, the company embarks on long-term sustainability objectives and expansion with clean energy. The project is also a part of India’s larger agenda of reaching 500 GW of renewable capacity by 2030.

REF: https://nsearchives.nseindia.com/corporate/IGL1_01092025181312_Reg30JVARVUNL.PDF

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