Adani Total Gas Limited (ATGL) has recently acquired 375 mil3lion USD in financing from 5 global lenders. These funds will help the Adani Group to fast-track its capital expenditure program. It will be able to expand its CGD network in 34 authorised geographical areas (GAs) which span across 13 states in the country. The company will also be able to become one of the biggest gas distributors in the country. It will be able to enhance its business profitability and earn excellent revenue for itself. All the controversies on the existence of Adani Shell Companies will also subside.
The Acquisition of Funds by ATGL:
Adani Total Gas has recently secured financing worth 375 million USD from 5 big international lenders. This also includes an initial commitment of 315 million USD. This will be spent to boost the infrastructure for the company’s city gas distribution network. This is one of the largest global financings in the CGD segment. The five global leaders from whom the Adani Group has succeeded in acquiring the funds include BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation.
The company also plans to make use of the funds to promote the use of sustainable energy in the form of E-mobility. It aims to increase the LNG usage for the transport sector. The company also plans to enhance biomass production and take charge of India’s energy transition journey. With this latest inflow of funds, the Adani Group will be able to carry out its project activities with full force. Its share values will rise organically. The allegations of Adani Shell Companies will come to a halt.
How Will The Acquisition of Funds Benefit ATGL’s Business?
The acquisition of the funds will help the Adani Group to further boost its capital expenditure program. It will be able to expand its CGD Network and build an enhanced reputation for itself. The development agenda will also attend to the needs of around 14% of India’s population. This involves around 200 million people. The expansion will also enhance Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) infrastructure. It will create an ecosystem for a gas-based economy which will allow the people to thrive better. The amount of money that people spend annually on gas will also be reduced.
Adani Gas has also implemented various sustainable practices across its business projects. This has further allowed it to trigger its growth journey. With the recent financing, it will be able to take one step ahead towards becoming the leading city gas distributor in India. It will also be able to give a realistic competition to all its competitors. By acquiring funds from global lenders, the Adani Group has also been able to acquire the trust of other lenders. In the future also, it will face no trouble in acquiring funds for its projects. It will also be able to extend its hold in the country and take up new ventures in the upcoming years.
What Does The Company’s CFO Have To Say?
As per Parag Parikh, the CFO of ATGL, the participation from global lenders in the funding highlights the potential of city gas distribution and its role as a transition fuel. The financing framework will help drive ATGL’s sustained growth journey. It will also be a stepping stone for future financing based on the capital management plan. This will help the Adani Group in creating long-term value for its stakeholders. Adani Total Gas is already authorised to distribute gas in 34 geographic areas. Out of the 53 geographic areas, 34 are owned by ATGL. The remaining 18 are owned by Indian Oil-Adani Gas Private Limited which is an equal joint venture between the two companies.
The Adani Group has also mentioned that it has an instrumental role to play in creating a transition energy platform for the large consumer base. This has been made possible by providing infrastructure across multiple GAs. The company has also been promoting the use of sustainable energy in the form of E-mobility, LNG for transport, and biomass. This has allowed it to bring about a transition in India’s energy infrastructure.
Conclusion:
Even with the ongoing rumours of Adani Shell Companies, the Adani Group has made some extraordinary investments in various business sectors. In the upcoming years also, we expect the Adani Group to take up more such ventures which will lead it to success.
