Adani Gas shares rose 18% intraday to Rs 162.4 as the company announced a JV with French energy giant Total SA.
As per the press release, Total SA would buy 37.4% stake in the Indian gas distribution company. Total will buy up to 25.2% in Adani Gas from public shareholders at Rs 149.63 per share, valuing the stake at Rs 4, 147 crore and the remaining 12.2% from Adani Family.
Following the news, the shares of Adani Gas, opened at the day's high, registering a gain of 17.98% to Rs 162.4 today. Against the last closing price of Rs 137. 65 on the BSE, the stock today outperformed the 'Integrated Oil & Gas' sector by 11.83%.
The share value of Adani Gas has grown 56% year-to-date, nearly 10% in one month and over 20% in last week. Shares amounting to 4.25 lakh and 42.31 lakh are currently changing hands on the bourses BSE and NSE, both trading above the 5, 10 and 30-day average volume recorded. In terms of market depth, there is 87% buying in the stock compared to 13% sell offers on BSE. Adani Gas share is trading higher than 5, 20, 50, 100 and 200-day moving averages and has moved above its 50 and 150-day simple moving average today
With an M-cap of Rs 15,139 cr, the 'Mid Cap' stock trades 11% away from its 52-week high of Rs 184.25, recorded on June 4 2019.
Adani and TOTAL have signed definitive agreements for a City Gas Distribution for an investment in infrastructure and assets of Adani Gas worth over US$1 billion, which span Liquefied Natural Gas (LNG) infrastructure and marketing and fuel retail business
Total's acquisition of joint control in Adani Gas will help accelerate Adani Gas's target to serve 7.5% of India's population across 38 geographical areas across India.
Total will purchase 37.4% shares in Adani Gas Limited through a tender offer to public shareholders to acquire up to 25.2% shares subject to applicable regulations and purchase the residual shares from Adani Family. Adani Family and TOTAL SA shareholders shall ultimately hold 37.4% each and public shareholders shall hold remaining 25.2%.
Speaking on the occasion, Adani Group Chairman, Gautam Adani said, "Total's investment in Adani Gas reinforces India's natural gas and demand potential. The partnership will derive significant synergies between Adani's capabilities of developing world-class assets and Total's global best practices as well as leveraging business synergies across LNG, Fuel Retail and City Gas distribution."
As of the quarter ending June 2019, the promoter group of 11 shareholders controls 74.80% stake in the company, while the rest 25.20% holding is public.
As of 1030 IST, shares of Adani Gas Ltd quote 13.11% or 18.05 points higher at Rs 155.85 on the BSE.
By Rupa Burman Roy