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After the demerger from parent — Adani Enterprises — shares of city gas distribution (CGD) arm Adani Gas (AGL) were listed on the stock exchanges at ₹72 on Monday. The shares ended the day on the NSE at ₹75.6. Shares of Adani Enterprises closed at ₹168.8, down 4 per cent, on the NSE.
The combined entity was trading at around ₹210 in September.
AGL becomes the sixth entity from the diversified Adani Group to be listed on the stock exchanges after Adani Enterprises, Adani SEZ, Adani Power, Adani Transmission and Adani Green Energy. In the gas retailing and distribution segment, AGL is fourth in the category to be listed after Indraprastha Gas, Gujarat Gas, and Mahanagar Gas.
Aims for numero uno
Earlier this year, the parent AEL had decided to spin off its CGD business and list it separately. Adani Gas has allotted equity shares to existing shareholders of Adani Enterprises in a 1:1 ratio. Following the listing, promoters will hold 74.92 per cent stake in AGL, whereas retail and institutional investors will hold 3.36 per cent and 21.72 per cent, respectively.
The company has laid down plans to invest over ₹8,000 crore in the next five years to consolidate its position as the largest private company in the sector.
Commenting on the listing, Gautam Adani, Chairman, Adani Group, said, “With the listing of AGL we aim to be the largest CGD company in the country in the next five years and have a more focussed approach for creating substantial value for our shareholders and fulfil our national energy imperatives. Listing AGL is another strategic move towards India’s vision of achieving a gas-based economy.”
For the year 2017-18, AGL posted total turnover of ₹1,395 crore and EBITDA of ₹374 crore, while its volumes increased by 17 per cent to 479 million metric standard cubic metres (mmscm) on year-on-year basis. The group currently runs CGD networks in Ahmedabad, Vadodara, Faridabad, and Khurja.
It has won rights to set up CGD networks at 13 cities in India. AGL’s network size currently stands at 6,000+ km pipeline and 70 CNG stations catering to more than 3.15 lakh households, 1,250 industrial units, and 2,400 commercial units.
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