Adani Total Gas share up 7% on securing $375 mn funding to expand CGD biz: Adani Total Gas share price | News on Markets
Adani Total Gas in focus: Shares of Adani Total Gas Limited (ATGL) surged as much as 7.36 per cent to hit an intraday high of Rs 846.65 per share on Monday, September 23, 2024.
Adani Total Gas share price surged after the company announced that global lenders have provided funding worth $375 million to the company.
In an exchange filing, Adani Total Gas said, “ATGL has entered into an overall financing framework which enables ATGL to secure future funding based on its business plan.”
Under the terms of the deal, the maiden financing of $375 million executed with international lenders include an initial commitment of $315 million with accordion feature to enhance the commitments.
“Participation from the global lenders reinforces the potential of city gas distribution in its role as transition fuel. This financing framework will drive ATGL’s sustained growth and will be a stepping-stone for future financing based on its capital management plan which will create a long-term value for all our stakeholders,” said Parag Parikh, CFO of ATGL.
Additionally, five international lenders participated in the initial financing which includes BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation, the company revealed in a statement.
Meanwhile, Latham & Watkins LLP and Saraf & Partners were the borrower’s counsel and Linklaters and Cyril Amarchand Mangaldas were the lender’s counsel for this financing.
Furthermore, the facility will fast track the capital expenditure programme enabling ATGL to rapidly expand its CGD network into its 34 authorised Geographical Areas (GAs) across 13 states.
This development agenda shall cater to up to 14 per cent of India’s population covering more than 200 million people. The expansion will deepen the penetration of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) infrastructure, creating an ecosystem for a gas-based economy, Adani Total Gas said.
Adani Total Gas Limited (ATGL) is a major city gas distribution company in India, established in 2005 and rebranded in 2021.
The company provides a range of services, including piped natural gas for residential, commercial, and industrial customers, as well as compressed natural gas for the transportation sector.
ATGL also invests in electric vehicle charging infrastructure and establishes compressed biogas processing plants utilising agricultural and municipal waste. In addition to its core services, ATGL promotes eco-friendly initiatives through tree plantation and urban greening efforts, striving to enhance green spaces in cities.
With a presence in over 52 geographical areas across states like Gujarat, Haryana, Karnataka, Tamil Nadu, Odisha, and Rajasthan, ATGL is committed to sustainable development and environmental conservation.
At 9:32 AM, shares of Adani Total Gas were trading 5.36 per cent higher at Rs 830.85 per share, In comparison, BSE Sensex was trading 0.24 per cent higher at 84,749,73 levels.
First Published: Sep 23 2024 | 9:36 AM IST
