Shares of Adani Total Gas (AGTL) were up by nearly 8% on Monday after the company secured financing for its city gas distribution (CGD) business.

What Happened: The Adani Group firm has secured financing of $375 million (₹3,130 crore), which includes an initial commitment of $315 million (₹2,629 crore), it said in a press release last week.

Five international lenders including BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank and Sumitomo Mitsui Banking Corporation participated in the initial financing round.

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The facility is expected to speed up Adani Total Gas’ capital expenditure program, allowing for quick expansion of its city gas distribution network across 34 authorised areas in 13 states.

It aims to serve about 14% of India's population, benefiting over 200 million people. The expansion will enhance the availability of piped natural gas (PNG) and compressed natural gas (CNG), the company said.

“Participation from the global lenders reinforces the potential of city gas distribution in its role as transition fuel…This financing framework will drive ATGL's sustained growth and will be a stepping-stone for future financing based on its capital management plan which will create a long-term value for all our stakeholders," Parag Parikh, the CFO of Adani Total Gas said.

Price Action: Adani Total Gas’ shares were up 5.97% to ₹835.75 on Monday.

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