Adani Total Gas Share Price Gains Over 8% On $375 Million Funding From International Lenders

Adani Total Gas share price recorded its highest jump since June after the company secured a funding of $375 million from international lenders to expand its city gas distribution network.

An exchange filing on Friday had said that 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, including BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank and Sumitomo Mitsui Banking Corp. participated in the initial financing, the release by Adani Total Gas added, and stated that the investment will fast-track the capital expenditure to expand the company's gas distribution network into "34 authorised geographical areas across 13 states".

"This development agenda shall cater to up to 14% of India’s population covering more than 200 million people," the filing said. The expansion will deepen the penetration of Piped Natural Gas and Compressed Natural Gas infrastructure, creating an ecosystem for a gas-based economy.

Adani Total Gas stock rose as much as 8.41% to Rs 855 apiece, the highest level since Sept. 5. It pared gains to trade 6.26% higher at Rs 837.40 apiece, as of 10:26 a.m. This compares to a 0.4% rise in the NSE Nifty 50 index.

It has fallen 15.24% year-to-date but has risen 36.63% in the last 12 months. Total traded volume so far in the day stood at 1.96 times its 30-day average. The relative strength index was at 32.72.

According to Bloomberg, no analysts track the company.