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Adani Gas gains for fifth straight day after it buys CGD biz in 3 new areas

The company had acquired three geographical areas namely Ludhiana, Jalandhar and Kutch (East)

Adani Gas | Buzzing stocks | Markets

SI Reporter  |  Mumbai 

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Shares of were trading higher for the fifth straight day, up 3 per cent to a fresh record high of Rs 247 on the BSE on Monday after the company said it has acquired business pertaining to City Gas Distribution (CGD) and retail sale of CNG in three geographical areas namely Ludhiana, Jalandhar and Kutch (East). The stock of the Adani Group Company rallied 13 per cent in a week. In comparison, the S&P BSE Sensex was up 7 per cent during the period.

"has signed a definitive agreement for acquisition of 3 Geographical Areas (GAs) namely Ludhiana, Jalandhar and Kutch (East) from Jay Madhok Energy Private Limited, Jay Madhok Holdings Private Limited, lshar Gas Ludhiana Private Limited and lshar Gas Jalandhar Private Limited," the company said on November 3. READ HERE

All 3 GAs have high volumes potential in terms of demand of over 6.5 MMSCMD over a period 10 Years. These GA’s are under Phase 1 of Bharat Mala Pariyojana by National Highway Authority of India (NHAI) which will further boost the development and volume growth, it said.

With the addition of these 3 GAs, shall now have a presence in 22 GAs as a standalone entity and additional 19 Gas with JV partner with IOCL aggregating its tally to 41 Gas (74 Districts) ensuring AGL’s continued leadership in CGD Business in India. The transaction is subject to necessary regulatory and other customary approvals, it said.

In a separate regulatory filing, Adani Gas announced strategic collaboration with Italy-based Snam, Europe’s leading gas infrastructure company. The collaboration would envisage exploration of the hydrogen value chain in India and global markets, as well as the development of biogas, biomethane, and low-carbon mobility.

Further, a non-binding agreement has been signed between Snam and Adani Gas [a joint venture company of Adani Group and Total of France (formerly known as Total SA)] to create a joint venture for setting-up a CNG compressors manufacturing facility in India. This would help in promoting the development of refueling infrastructure for sustainable mobility and fostering the use of natural gas, as envisioned by the Government of India.

In the past month, the stock has rallied 30 per cent, against 5 per cent gain in the S&P BSE Sensex.

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First Published: Mon, November 09 2020. 10:23 IST