Following this rally, the market capitalisation (market cap) of the gas company hit Rs 100 billion.
The market cap of Adani Gas, the gas distribution arm of Adani Group, stood at Rs 121.42 billion at 09:21 am, as per BSE data. The company has entered into the list of the top-200 most valuable companies in terms of market-cap following a sharp rise in its stock price post listing.
The stock is trading at its highest level since listing November 5, 2018, it has rallied 52% from Rs 73.70. In the past three days, it zoomed 44% from Rs 77.70 after the stock shifted to the normal trading segment with effect from Tuesday, November 20, with a revised circuit filter of 20%.
The stock was admitted to the 'T' group of securities on the exchange with 5% circuit filter. In the trade-for-trade category, no speculative trading is allowed and delivery of shares and payment of consideration amount are mandatory.
On Wednesday, Adani Gas said that it has bagged authorisation from the Petroleum and Natural Gas Regulatory Board (PNGRB), Government of India to expand its city gas footprint in 13 new geographical areas in the recently concluded 9th round of city gas distribution (CGD) bidding. In addition, the company has also won 9 geographical areas in its joint venture company with Indian Oil Corporation, i.e. Indian Oil - Adani Gas (IOAGPL).
The 13 new geographical areas for which AGL has been granted authorisation to lay city gas infrastructure are in six states which are Gujarat, Haryana, Karnataka, Tamil Nadu, Rajasthan and Odisha.
“To leverage India’s rapidly growing gas market, Adani Gas has planned to invest over Rs 80 billion in the next 5 years to consolidate its position as the largest private company in the sector. It is noteworthy that India’s current CGD consumption is about 15-18% of domestic gas production and even at peak demand, consumption will be around 25-30%,” the company said in a press release.
Adani Gas became the fifth company from the Adani Group now having market-cap an over Rs 100-billion. Adani Ports (Rs 754 billion), Adani Transmission (Rs 262 billion), Adani Power (Rs 180 billion) and Adani Enterprises (Rs 178 billion) are in the list, while Adani Green Energy has a market cap of Rs 70 billion.