in the rating rationale said that the rating upgrade for Adani Gas
(AGL) takes into consideration the completion of the acquisition of 37.4 per cent stake in AGL by Total Holdings SAS (Total), a 100 per cent subsidiary of Total SA, following which Total has been classified as a co-promoter of AGL.
expects the operational synergies from this transaction to be significant over the long-term. Total SA being among the leading liquefied natural gas (LNG) players in the world, AGL should benefit from a favourable long-term LNG sourcing tie-up for its operations.
Moreover, with Total being an equal shareholder as the Adani Group after this transaction, the equity requirement for the newly awarded 15 geographical areas (GAs) in the city gas distribution (CGD) bid round 9 and 10 will be contributed equally by both these promoter groups. ICRA believes that Total’s strong credit profile (Moody’s Aa3 (Negative)/P1) coupled with Adani Group’s financial flexibility lends considerable support to AGL in terms of its ability to raise capital to meet the capex funding requirements, it said. CLICK HERE FOR FULL REPORT
At 11:25 am, the stock was trading 2.5 per cent higher at Rs 195 on the BSE, as compared to a 1.2 per cent fall in the S&P BSE Sensex. A combined 5.93 million equity shares have changed hands on the counter on the NSE and BSE so far.