Adani Gas up 5% on stock market debut

The stock is locked in upper circuit of 5% at Rs 73.70 on debut on the BSE on Monday.

Shares of Adani Gas have locked in the upper circuit of 5% at Rs 73.70 per share on debut on the BSE on Monday. The stock opened at Rs 70.20, has seen only buyers on the counter.

A combined 936,106 equity shares changed hands and there were pending buy orders for 890,406 shares on the BSE and NSE at 10:05 am. The scrip has been admitted to the 'T' group of securities on the exchange.

The stock trading under ‘T’ group, under which stocks are settled on a trade-to-trade basis and no netting off will be allowed as a surveillance measure.

Last year, Adani Enterprises had announced demerger of its gas sourcing and distribution business into Adani Gas as part of its efforts to simplify the overall business structure. The shareholders of Adani Enterprises were allotted one equity share of Adani Gas (face value of Re 1) for each share held in Adani Enterprises.

Adani Gas is the gas sourcing and distribution business that was spun off from Adani Enterprises earlier this year. It is developing city gas distribution (CGD) networks to supply the piped natural gas (PNG) to the industrial, commercial, domestic (residential) and compressed natural gas (CNG) to the transport sector.

The company won rights to develop the distribution infrastructure for 13 regions by itself in the recent auctions. Its joint venture with Indian Oil will develop another nine areas.

Last month, Gautam Adani – led Adani Group and French energy major Total SA has signed an agreement to invest in downstream. This will include a foray into retail, with the duo opening 1,500 outlets to supply CNG and develop various LNG projects.