Why Adani Total Gas Share Price is Rising

Adani Group stocks were under intense scrutiny following the release of the first Hindenburg report. The report led to significant market volatility, wiping out billions in market capitalisation for the group.

Investor sentiment was severely impacted due to the report, and the stocks saw heavy sell-offs across the board. The group faced several allegations, leading to a period of uncertainty for its listed companies.

However, despite the turbulence, the Adani Group has continued to regain investor confidence. The second report did not have a major impact on the group.

One Adani group stock that has caught the attention of investors recently is Adani Total Gas.

Adani Total Gas, a leading player in the Indian city gas distribution sector, has been expanding its reach by providing clean energy solutions across India.

The company focuses on developing a strong network of compressed natural gas (CNG) stations and piped natural gas (PNG) connections.

Adani Total Gas stock rallied 7% on Monday after its latest announcement.

Let's dig deeper into the details of the announcement.

Global Financing

Adani Total Gas shares surged after the company secured a US$ 375 million (m) global financing, the largest-ever in the city gas distribution business.

The financing deal includes an initial commitment of US$ 315 m, with room to increase the amount. Five major international lenders participated, including BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation.

This global financing is expected to accelerate the development of Adani Total Gas' City Gas Distribution (CGD) network. The expansion will cover over 200 m people, accounting for 14% of India's population.

The secured funds will help it expand its gas distribution infrastructure across 34 authorised geographical areas (GAs) in 13 states.

Adani Total Gas has established itself as a major player in India's energy transition, with 34 GAs under its control. A further 19 are managed by a 50:50 joint venture between Adani Total Gas and Indian Oil Corporation.

The company's focus on growing the gas distribution network is helping India shift towards natural gas, a cleaner energy source. This global financing marks a key step in achieving its long-term growth targets.

Participation from global lenders not only reinforces confidence in the company's future but also highlights the critical role of natural gas in India's energy transition.

Consequently, the company's share price surged 7% on Monday, reflecting strong market optimism about its growth trajectory.

What Next?

Adani Total Gas has outlined an aggressive expansion plan aimed at boosting its infrastructure and services in the coming years.

The company is rapidly growing its network of CNG stations, with 12 additional stations added last quarter, bringing the total to 559 stations.

Its backbone steel pipeline network has expanded to 12,244 inch-km, enabling wider distribution across its 34 geographical areas.

On the residential side, Adani Total Gas added over 38,000 new homes to its PNG service in Q1 FY25, now reaching 8.6 lakh homes.

Its long-term strategy involves growing both its industrial and commercial PNG customer base, which saw the addition of 211 new customers, pushing the total to 8,542.

Looking ahead, Adani Total Gas is diversifying into new ventures. The company is developing a large network of EV charging points, with over 1,200 points established by June 2024.

These are set to expand significantly, with more charging stations under construction, targeting 23 states and 217 cities.

Additionally, Adani Total Gas is venturing into biomass energy and LNG for transport and mining, setting ambitious targets like commissioning 10 LNG stations by the end of FY25.

How Adani Total Gas Share Price has Performed Recently

In the past five days, Adani Total Gas share price is up 1.8%. In the last month, it is down 4.8%.

In 2024, so far its share price has tumbled 18.6% but it has rallied 28.5% in the last year.

The stock touched its 52-week high of Rs 1,259.9 on 8 December 2024 and a 52-week low of Rs 521.9 on 26 October 2023.

About Adani Total Gas

Adani Total Gas is an India-based company engaged in developing City Gas Distribution (CGD) networks to supply Piped Natural Gas (PNG) to industrial, commercial, and domestic (residential) customers and Compressed Natural Gas (CNG) to the transport sector.

It operates through the selling and distribution of the natural gas segment. It offers residential PNG, commercial PNG, and Industrial PNG.

The company is authorised in 33 geographical areas.

The company has two wholly owned subsidiaries, Adani TotalEnergies E-Mobility and Adani TotalEnergies Biomass for its e-mobility and biomass business.

For more details about the company, you can have a look at see the Adani Total Gas company fact sheet and quarterly results. on our website.

You can also compare Adani Total Gas with its peers.

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Happy investing!

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