Adani Gas to raise $400 million to fund two-year capex requirement

By: |
November 4, 2020 3:30 AM

The company has a 10-year plan to invest Rs 9,000 crore on various city gas distribution and CNG projects. The company on its own and in a joint venture with state-owned Indian Oil Corp (IOC) has won city gas licence for 38 geographical areas spread over 71 districts in 15 states.

The e-auction witnessed strong competition amongst the bidders with the mine attracting good premium over the floor price, it said.The e-auction witnessed strong competition amongst the bidders with the mine attracting good premium over the floor price, it said.

The board of directors of Adani Gas has approved a plan to raise $400 million or Rs 3,000 crore in the US-denominated bonds to fund its capital expenditure requirement for the next two years, senior company management said in a conference call on Tuesday.

The company has a 10-year plan to invest Rs 9,000 crore on various city gas distribution and CNG projects. The company on its own and in a joint venture with state-owned Indian Oil Corp (IOC) has won city gas licence for 38 geographical areas spread over 71 districts in 15 states.

“The fund raised will go towards capital expenditure for the next two years as part of the 5-year capex plan,” said Suresh P Manglani, CEO of Adani Gas.

The Board of Directors also changed the name of the company to Adani Total Gas and approved plans to enter new businesses of biogas, biofuel, biomass, LCNG, HCNG, EV, Hydrogen, manufacturing of various equipment and value-added services relating to CGD business.

Adani Gas reported a 13% year-on-year increase in net profit to Rs 136 crore for the July-September quarter of 2020. However, the revenue from operations fell 12% on year to Rs 441 crore on 10% year-on-year decline in gas sales volumes to 131 mmscm. The CNG sales declined by 21% on year to 59 mmscm while the PNG sales rose 2% on year to 72 mmscm.

The Ebitda or operating profit for the September quarter rose 48% on year to `218 crore while the Ebitda margins rose 2021 basis points to 49.43%.

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