Adani Gas board approves raising $400 million for capex through bonds

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

The company has a 10-year plan to invest Rs 9,000 crore on various city gas distribution and CNG projects. Adani Gas on its own as well as 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 in an investors call. 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 (Low compressed natural gas), HCNG (High compressed natural gas), EV (Electric Vehicles), Hydrogen, manufacturing of various equipment and value-added services relating to CGD business.

Adani Gas reported a 13 per cent 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 per cent on year to Rs 441 crore on 10 per cent year-on-year decline in gas sales volumes to 131 mmscm (million metric standard cubic metres). The CNG sales declined by 21 per cent on year to 59 mmscm while the PNG (Piped Natural Gas) sales rose 2 per cent on year to 72 mmscm.

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

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