Adani Total Gas, the joint venture between Adani Gas Ltd and a French company, Total Gas Ltd will raise $400 million through the sale of bonds to foreign investors to meet the capital expenditure. Adani Gas noted a record net profit in the July-September quarter (136 crore-13 percent increase in profit against ₹120 crore in the previous period) as market restored to normalcy which was faster than predicted with the economy reinflating on easing of lockdown restrictions.
“Over the next five years, we need around ₹8000 crore to fund our capital expenditure. This is part financing for the same” said Suresh Manglani, CEO of Adani gas, today on the earnings call with media.
Manglani added that Adani gas will be renamed as Adani Total Gas Ltd. to symbolize the joint venture with the French company. Total Gas Ltd had finalized a deal in October to secure a 37.4 percent stake in Adani Gas Ltd for ₹5,000 crore.
The company said, demand for piped natural gas (PNG) and compressed natural gas (CNG) is at 90 percent of the pre-covid levels and it has set up 19 new stations during the quarter, taking the network of CNG stations to a total of 134.
“We are actively pursuing the strategy of expanding PNG and CNG Infrastructure on a fast-track mode. Apart from PNG, we are consistently encouraging society to convert their vehicles to environmental-friendly CNG and contribute to reducing the carbon footprint,” added Manglani.
Adani Gas has lowered CNG and piped cooking gas prices in various geographical areas in tandem with the reduction in natural gas prices. Rates have been reduced in Uttar Pradesh, Haryana and Gujarat, the company disclosed in a statement.
The company’s board also approved altering its main object clause of Memorandum of Association (MOA) by inserting objects to carry on the businesses of bio-gas, bio-fuel, bio-mass, electric vehicle, hydrogen manufacturing of various equipment and provision of value-added services relating to city gas business, Manglani pointed out.
“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 Group Chairman, Gautam Adani added.