Adani Total Gas Ltd Secures $375 Million for Business Expansion

Adani Total Gas Ltd shares surged over 8% as the company secured USD 375 million from international lenders for expanding its City Gas Distribution network. The funding will enhance the firm's capabilities, covering 34 geographical areas in 13 states, potentially serving 14% of India's population with PNG and CNG infrastructure.

Shares of Adani Total Gas Ltd surged more than 8 percent on Monday after securing USD 375 million in funding from global lenders to expand its business.

The stock soared 8.37 percent to Rs 854.65 on the BSE, while on the NSE it climbed 8.40 percent to Rs 855.

This maiden financing deal includes an initial commitment of USD 315 million, with an accordion feature to increase commitments. Five international lenders participated: BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation.

The funding will fast-track ATGL's capital expenditure program, enabling it to rapidly expand its City Gas Distribution (CGD) network across 34 authorized geographical areas in 13 states, potentially reaching up to 14 percent of India’s population, about 200 million people.

Parag Parikh, CFO of ATGL, noted that global lender participation underscores the significance of city gas distribution as a transition fuel.

(With inputs from agencies.)