Adani Total Gas Ltd’s stock saw a significant surge on Monday, rising by 6% after the company secured a $375 million funding commitment from international lenders to expand its city gas distribution network. This marks a key milestone in Adani Total Gas’ ambitious plans to strengthen its presence in India’s growing natural gas market.
Stock Performance Soars Following the funding announcement.
Shares of Adani Total Gas on the Bombay Stock Exchange (BSE) closed at ₹836.10, a 6.02% increase, after hitting an intraday high of ₹854.65, reflecting an 8.37% surge. On the National Stock Exchange (NSE), the stock similarly jumped 5.19% to close at ₹829.70, with an intraday peak of ₹855, marking an 8.40% increase. The trading volume was substantial, with 2.88 lakh shares traded on the BSE and 61.22 lakh shares on the NSE.
$375 Million in financing to Accelerate Expansion
The surge in stock prices followed the company’s announcement on Friday that it had secured $375 million in funding from global financial institutions. This funding, part of its maiden financing initiative, includes an initial commitment of $315 million with the option to increase the amount further.
In a statement, Adani Total Gas said, “The maiden financing of USD 375 million executed with international lenders includes an initial commitment of USD 315 million with accordion feature to enhance the commitments.” Five international lenders, namely BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation, participated in this financing round.
Expansion of City Gas Distribution Network Across India
The secured funding will be utilized to fast-track Adani Total Gas’ capital expenditure program, focusing on expanding its City Gas Distribution (CGD) network in 34 authorized geographical areas (GAs) across 13 states in India. This expansion will cover up to 14% of India’s population, benefiting more than 200 million people.
The initiative aims to deepen the infrastructure for piped natural gas (PNG) and compressed natural gas (CNG) in India, further supporting the country’s transition toward a gas-based economy. The company’s expansion plans align with the government’s push for cleaner and more sustainable energy sources, increasing the adoption of natural gas as a transitional fuel.
Global Lenders Back City Gas Distribution Potential
The participation of international lenders highlights the growing global interest in India’s gas distribution sector, which is increasingly seen as a vital component of the country’s energy transition.
“Participation from the global lenders reinforces the potential of city gas distribution in its role as transition fuel,” said Parag Parikh, Chief Financial Officer of Adani Total Gas.
