Adani Total Gas shares jump 6% on USD 375 mn funding to expand city gas network

New Delhi: Shares of Adani Total Gas Ltd surged 6 per cent on Monday after the firm secured USD 375 million funding from global lenders for expansion of its business.

The stock surged 6.02 per cent to settle at Rs 836.10 apiece on the BSE. During the day, it jumped 8.37 per cent to Rs 854.65.

Shares of the firm on the NSE climbed 5.19 per cent to close at Rs 829.70 each. Intra-day, the stock soared 8.40 per cent to Rs 855.

In terms of volume, 2.88 lakh shares of the firm were traded on the BSE and 61.22 lakh shares on the NSE during the day.

"The maiden financing of USD 375 million executed with international lenders include an initial commitment of USD 315 million with accordion feature to enhance the commitments," the firm said in a statement on Friday.

Five international lenders participated in the initial financing -- BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation.

"The facility will fast-track the capital expenditure program enabling ATGL to rapidly expand its City Gas Distribution (CGD) network into its 34 authorized geographical areas (GAs) across 13 states," it said.

This 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.

"Participation from the global lenders reinforces the potential of city gas distribution in its role as transition fuel," Parag Parikh, CFO of ATGL, said.