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Adani Gas Ltd gets listed in bid be the largest CGD Company in India

Adani Gas Ltd gets listed in bid be the largest CGD Company in India

Ahmedabad, Nov 5 (UNI) Adani Gas Ltd, the gas distribution arm of Adani Group, on Monday announced its listing on the stock exchanges, in a bid to become the largest city gas distribution (CGD) company in India and unlock its value for existing shareholders.

According to a statement issued by the company here as part of the listing process, Adani Gas has allotted equity shares to existing shareholders of Adani Enterprises at 1:1 ratio.

Following the listing, the Adani Group owners will hold 74.92 percent stake in Adani Gas whereas retail and institutional investors will hold 3.36 percent and 21.72 percent respectively.



To leverage India's rapidly growing gas market, Adani Gas has planned to invest over Rs 8,000 crore in the next five years to consolidate its position as the largest private company in the sector.

India's current CGD consumption is about 15-18 per cent of domestic gas production and even at peak demand, consumption will be around 25-30 per cent, the statement said.



In FY 2017-18, Adani Gas reported turnover of Rs 1,395 crore and EBITDA of Rs 374 crore. AGL's volumes increased by 17 per cent to 479 mmscm (million metric standard cubic metres) y-o-y. The company achieved a y-o-y volume growth of 12 per cent in CNG segment and 23 per cent in PNG segment.



It has quoted Gautam Adani, Chairman, Adani Group as saying, 'Natural gas is one of the fastest growing sectors globally along with renewable energy. The Government of India has set a target to increase the share of natural gas in India's primary energy mix to 15 per cent by 2022.

'Its wider adoption can help India fulfill Prime Minister Narendra Modi's vision to raise the quality of life of people by improving the nation's exposure to clean and green energy for household and industrial purposes.

'With the listing of AGL we aim to be the largest CGD Company in the country in next five years and have a more focused approach for creating substantial value for our shareholders and fulfill our national energy imperatives. Listing AGL is another strategic move towards India’s vision of achieving a gas-based economy,' he added.



The group currently runs city gas distribution (CGD) networks at Ahmedabad, Vadodara in Gujarat, Faridabad in Haryana and Khurja in UP. It has won rights to set up CGD networks at 13 cities in India. In addition, Adani Gas Joint Venture with Indian Oil will have 18 more geographical areas to expand the CGD business.

AGL's network size currently stands at 6,000+ km pipeline and 70 CNG stations catering to more than 3.15 lakh households, 1,250 industrial units and 2,400 commercial units.



With the Government planning to offer additional geographical areas for gas distribution next year coupled with rapid urbanisation, AGL expects to impact around 10 per cent of the population by 2023.

UNI RAJ RJ 1820

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