Adani Total Gas share price rises 8% : Secures its largest Global Funding in the City Gas Distribution Business

Stock Market today: Adani Total Gas share price gained almost 8% in opening trades on Monday. The company announced that it has secured largest Global Funding in the City Gas Distribution Business.

The Adani Total Gas share price opened at ₹845 on the BSE on Monday, more than 7% higher than its previous close on Friday. The Adani Total Gas share price gained further to highs of ₹851.00 marking almost 8% gains.

The Adani Total Gas share price has seen more than 33% gains during last one year.

Adani Total Gas  on Friday post market hours annunced that it has entered into an overall financing framework which enables Adani Total Gas Ltd to secure future funding based on its business plan in the city gas distribution business.

As per the release "the maiden financing of $ 375 million executed with international lenders include an initial commitment of $ 315 million with accordion feature to enhance the commitments. Five international lenders participated in the initial financing which includes BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation.

The development will help it expand its City Gas distribution network into its 34 authorized Geographical Areas (GAs) across 13 states.

Over 200 million people, or up to 14% of India's total population, will be served by this development plan. By expanding the infrastructure for compressed natural gas (CNG) and piped natural gas (PNG), an ecosystem for a gas-based economy will be created, as per the company.

The Adani total Gas is active in e 53 geographical areas in the city Gas Distribution space. Out of these 34 are owned by Adani Total Gas Ltd on its own and the balance 19 GAs are owned by Indian Oil-Adani Gas Private Limited (IOAGPL) – a 50:50 joint venture between Adani Total Gas Limited and Indian Oil Corporation Limited.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions