Adani Gas Lists At Rs 72 Post Demerger With Adani Enterprises
Adani Gas Ltd. — the gas sourcing and distribution business that was spun off from Adani Enterprises Ltd. earlier this year — listed at Rs 72 per share (pre-market discovery price) on the NSE Ltd. today. The stock went on to close at Rs 75.60 apiece.
This after the pre-open price of Adani Enterprises indicated Rs 60 per share for Adani Gas. The stock will remain in the trade-to-trade segment for 10 trading days. Intraday trades are not allowed in stocks in T2T segments.
The shareholders of Adani Enterprises were allotted one equity share of Adani Gas (face value of Re 1) for each share held in the parent company. The promoters will hold 74.92 percent stake in Adani Gas with the balance held by the public.
The Gautam Adani-backed company was the biggest winner in the ninth round of city gas distribution auctions, supplies gas for cooking and automobiles in Ahmedabad and Vadodara in Gujarat, Faridabad in Haryana and Khurja in Uttar Pradesh. The company’s joint venture with state-owned Indian Oil Corporation Ltd.—Indian Oil Corporation Ltd.-Adani Gas Pvt. Ltd.—separately has rights to distribute gas in nine other cities.
Adani 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. Adani Gas expects all the 31 areas to be operational by the financial year ending March 2025.
The auctions were part of the government’s effort to increase the share of gas, a cleaner fuel, from 6 percent to 15 percent by 2030. Besides helping India reduce its carbon footprint in accordance with the COP-21 protocol, that would also reduce the oil import bill.
Adani Gas will be the fourth listed city gas distribution company after Indraprastha Gas Ltd., Gujarat Gas Ltd., and Mahanagar Gas Ltd. Its operational profit grew at a faster pace than peers in the last five years. Revenue growth remained subdued due to limited growth in sales volumes.