In Monday’s trading session, the shares of India’s leading City Gas Distribution (CGD) company surged 8.4 percent to Rs. 854.65, after the company secured $375 million funding to expand its city gas distribution (CGD) business.
At 12:00 p.m., the shares of Adani Total Gas Limited were trading in the green at Rs. 834.6, up by 5.8 percent, compared to its previous closing price of Rs. 788.6, with a market capitalisation of Rs. 91,944 crores.
What’s the news:
According to the latest regulatory filings with the stock exchanges, Adani Total Gas Limited (ATGL) secured the largest global financing in the city gas distribution (CGD) business. Global lenders have provided financing to the company.
ATGL has entered into an overall financing framework that will allow the company to secure future funding in line with its business plan.
The maiden financing of $375 million executed with international lenders involves an initial commitment of $315 million, with an accordion feature to increase these commitments.
Five international lenders participated in this initial financing, including BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation.
This financing facility will accelerate ATGL’s capex program, enabling a rapid expansion of its CGD network across 34 authorized Geographical Areas (GAs) in 13 states.
This development initiative aims to serve up to 14 percent of India’s population, covering over 20 crore people.
It will enhance the reach of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) infrastructure, creating an ecosystem for a gas-based economy.
Financials:
In Q1 FY25, the company generated Rs. 1,145 crores in operating revenue, an 8.4 percent increase from the Rs. 1,056 crores recorded in Q1 FY24. The consolidated net profit also grew by 14.7 percent reaching Rs. 172 crores, up from Rs. 150 crores, in the same period of the previous fiscal year.
On a year-on-year basis, the standalone Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA increased from Rs. 255 crores in Q1 FY24 to Rs. 308 crores in Q1 FY25, registering a growth of nearly 21 percent.
Stock Performance:
The stock has delivered positive returns of nearly 31.4 percent of returns in one year, but around 12.2 percent of negative returns in the last six months. So far in 2024, the shares of Adani Total Gas have given negative returns of about 16.8 percent.
About the company:
Adani Total Gas Limited is engaged in the business of city gas distribution (CGD), supplying PNG to industrial, commercial, and residential segments and CNG to the automotive segment.
The company is also exploring opportunities in biogas, biofuels, biomass, liquefied compressed natural gas (LCNG), HCNG, electric vehicles (EV), hydrogen, and the manufacturing of various equipment, alongside providing value-added services related to its CGD business.
ATGL holds a 50 percent stake in the joint venture (JV), Indian Oil – Adani Gas Private Limited (IOAGPL), which is also a CGD entity with a presence in another 19 geographical areas.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
