Adani Total Gas shares in focus: On Monday, September 23, 2024, shares of Adani Total Gas Limited (ATGL) rose by up to 7.36% to an intraday high of Rs 846.65 per share. Adani Total Gas' share price soared when the business revealed that global lenders had granted $375 million in investment.
In an exchange filing, Adani Total Gas stated that "ATGL has entered into an overall financing framework which enables ATGL to secure future funding based on its business plan." According to the terms of the agreement, the initial financing of USD 375 million negotiated with foreign lenders includes an initial commitment of $315 million, with an accordion mechanism to increase obligations.
"The participation of global lenders reinforces the potential of city gas distribution as a transition fuel. This financing structure will support ATGL's continued development and serve as a stepping stone for future financing based on its capital management plan, creating long-term value for all stakeholders," stated Parag Parikh, CFO at ATGL.
In addition, five foreign lenders participated in the initial funding, including BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation, according to a company release.
Meanwhile, Latham & Watkins LLP and Saraf & Partners represented the borrower, while Linklaters and Cyril Amarchand Mangaldas represented the lender in this financing transaction. Furthermore, the facility will expedite the capital investment program, allowing ATGL to quickly expand its CGD network into its 34 authorized Geographical Areas (GAs) across 13 states.
This development plan will benefit up to 14 percent of India's population, or more than 200 million people. According to Adani Total Gas, the development would increase the penetration of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) infrastructure, hence building an environment for a gas-based economy.
Adani Total Gas Limited (ATGL) is a significant city gas distribution firm in India, founded in 2005 and renamed in 2021. The firm offers a variety of services, including piped natural gas for residential, commercial, and industrial users, as well as compressed natural gas for transportation purposes.
ATGL also invests in electric car charging infrastructure and operates compressed biogas processing plants that use agricultural and municipal waste. In addition to its primary services, ATGL promotes eco-friendly activities such as tree planting and urban greening, with the goal of improving green areas in cities.
ATGL, which operates in 52 states including Gujarat, Haryana, Karnataka, Tamil Nadu, Odisha, and Rajasthan, is dedicated to sustainable development and environmental protection. At 9:32AM, Adani Total Gas shares were trading 5.36 percent higher at Rs 830.85 per share, while the BSE Sensex was trading 0.24 percent higher at 84,749,73 levels.
