Adani Total Gas Secures $375M Funding, Shares Surge

Adani Total Gas Ltd saw a 6% rise in its shares after securing $375 million in funding from international lenders. The funding will be used to expand its City Gas Distribution network across 34 geographical areas, servicing 14% of India's population.

Shares of Adani Total Gas Ltd surged 6 percent on Monday following a successful $375 million funding round from global lenders aimed at business expansion.

The stock increased by 6.02 percent to close at Rs 836.10 on the BSE, reaching an intra-day peak of Rs 854.65.

Similarly, on the NSE, shares rose by 5.19 percent to finish at Rs 829.70, peaking at Rs 855 during the day, with trading volumes hitting 2.88 lakh shares on the BSE and 61.22 lakh shares on the NSE.

The $375 million financing deal, announced Friday, saw participation from five international lenders: BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation. The initial commitment was $315 million, with an accordion feature to increase commitments.

The financing will accelerate Adani Total Gas's capital expenditure program, allowing rapid expansion of its City Gas Distribution network across 34 authorized areas in 13 states, reaching 200 million people, or 14% of India's population.

According to Parag Parikh, CFO of Adani Total Gas, the participation of global lenders underscores the potential of city gas distribution as a transitional fuel.

(With inputs from agencies.)