Adani Total Gas Ltd, the joint venture between Adani Gas Ltd and French energy major Total Gas Ltd will raise $400 million selling bonds to foreign investors to meet its capital expenditure requirement, an official said today.
“We will be raising $400 million in dollar denominated bonds to finance our capex requirement for the next two years. Over the next five years we need around ₹8,000 crore to fund our capital expenditure. This is part financing for the same,” said Suresh Manglani, CEO, Adani Gas today on earnings call with media.
Manglani added that Adani Gas will be rechristened as Adani Total Gas Ltd. France’s Total SA had last October agreed to acquire 37.4% stake in Adani Gas Ltd for ₹5,700 crore.
The company posted 13% increase in profit after tax at ₹136 crore for the second quarter of this fiscal against ₹120 crore in the corresponding previous period.
During the quarter, revenue from operations stood at ₹441 crore against ₹503 crore in the corresponding previous period.
Earnings before interest, tax, depreciation and amortization increased by 48% to 218 crore against ₹147 crore in second quarter of last fiscal.
Gautam Adani, Chairman, Adani Group said, “I anticipate gas will be one of the key pillars that will enable India to get an energy mix that is cleaner and superior from multiple dimensions. We are committed to becoming a leader in this sector”.
Adani Gas had last month cut CNG and piped cooking gas prices in various geographical areas in sync with the reduction in natural gas rates. Rates have been reduced in Uttar Pradesh, Haryana and Gujarat, the company had said in a statement.
“We are actively pursuing the strategy of expanding PNG and CNG Infrastructure on fast-track mode. Apart from PNG, we are consistently encouraging society to convert their vehicles to environmental- friendly CNG and contribute in reducing the carbon footprint,” added Manglani.
The company said demand from piped natural gas (PNG) as well as compressed natural gas (CNG) segments is at 90% of pre-covid levels and it has commissioned 19 new stations during the quarter, taking the network of CNG stations to to a total of 134.
It also added 7704 new PNG connections taking the total home connections to 4.46 lakhs.
Commercial and industrial connections have increased to 4588.
The company is also altering its memorandum of association to insert objects to carry on businesses of bio-gas, bio-fuel, electric vehicles and provision of value added services relating to CGD business among others.
