Adani Total Gas shares jump over 8% on Rs 3,132 crore funding to expand city gas network

New Delhi: Shares of Adani Total Gas Ltd surged more than 8 per cent on Monday after the firm secured Rs 3,132 crore ($375 million) funding from global lenders for expansion of its business.

The stock jumped 8.37 per cent to Rs 854.65 on the BSE. Shares of the firm at the NSE soared 8.40 per cent to Rs 855.

"The maiden financing of Rs 3,132 crore ($375 million) executed with international lenders include an initial commitment of Rs 2,631 crore ($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," said Parag Parikh, CFO of ATGL.