Shares of city gas distribution (CGD) companies - Indraprastha Gas Ltd (IGL) and Mahanagar Gas Ltd (MGL), crashed by up to 15 per cent. Read on to know what triggered this sharp price correction.

As city gas distributor companies' reliance on market-linked gas reaches 50% and continues to increase, they may have to prioritise maintaining margins over pursuing volume growth. This situation could lead to a derating of the sector,

Antique Stock Broking said the probability of CGDs getting impacted is likely to be a structural outcome. The fresh development, over five years, would imply APM allocation would be down to zero.

APM gas allocation cut by around 20% for CNG segment will have an adverse impact on the profitability of MGL and IGL

MGL's stock plummeted 11%, reaching a low of Rs 1,568.30, while IGL experienced a 10% drop, closing at Rs 453.70 on the Bombay Stock Exchange as of latest update.