Shares of Adani Group companies rallied up to 13 per cent in intraday trade on the Bombay Stock Exchange (BSE) on Friday amid spurt in volume trade in an otherwise weak market.
Adani Gas share price rallied as much as 12.77 per cent to touch an intraday high of 168.60 apiece on the BSE after the Competition Commission of India (CCI) on Thursday approved the acquisition of 37.4 per cent shareholding and joint control by Total Group in Adani Gas. The stock ended 7.89 per cent higher at Rs 161.30 against previous closing price of Rs 149.50.
There was also spurt in volume trade as 13.18 lakh shares changed hand over the counter as compared to two-week average volume of 0.68 lakh shares.
Among others group companies, Adani Transmission, Adani Green Energy, Adani Enterprises and Adani Ports and Special Economic Zone rose in the range of 3-12 per cent on the BSE.
Last month, Adani Gas had signed definitive agreements with France-based oil and gas company Total S.A. to extend their existing partnership and commitment for developing multi-energy offerings to the Indian energy market.
According to the agreement, Total S.A. will acquire a 37.4 per cent stake in Adani Gas. Of this, the French major will acquire 25.2 per cent from shareholders via an open offer and the remaining stake from Adani Family.
Adani Family and TOTAL SA shareholders will ultimately own 37.4 per cemt each and public shareholders will hold remaining 25.2 per cent.
The company will use fund proceeds to accelerate project executions in all its new geographical areas.
Adani Gas is developing city gas distribution (CGD) networks to supply the piped natural gas (PNG) to the industrial, commercial, domestic (residential) sector and compressed natural gas (CNG) to the transport sector.
As part of the existing joint venture, Adani and Total will target to build a fuel retail network of 1,500 retail stations, on the main roads of the country, such as highways and intercity connections. Adani Gas will also be setting up 1,500 CNG stations for gas distribution over the next 10 years in its and its joint ventures' geographical areas across 71 districts, 68 towns across 15 states in India.
In addition, Adani Gas and its joint venture will distribute gas to 60 lakh households in the next decade.
Edited by Chitranjan Kumar