Varun Industries has informed that Varun Petroleum SARL, Madagascar, a subsidiary of the company has signed a new production sharing contract (PSC) with OMNIS of Madagascar, for an off-shore gas block covering area of approximately 13,200 square kilometers on the basin of Indian Ocean.

Under the agreement, Varun Petroleum SARL will have the right to explore, exploit and off-shore mining in the East coast point of Sainte Marie Region.

Shares of Varun Industries gained Rs 8.2, or 4.99%, to settle at Rs 172.45. The total volume of shares traded was 598,512 at the BSE (Wednesday).