Adani Total Gas Ltd and Torrent Gas Pvt Ltd will pick up 5% stake each in Indian Gas Exchange (IGX), a wholly owned subsidiary of power trading bourse Indian Energy Exchange.
Adani Total Gas was formed after French energy giant Total SA in October 2019 picked up a 37.4% stake in Adani Gas for nearly Rs 6,155 crore ($868.5 million). Torrent Gas is part of the larger energy and pharmaceuticals-focused Torrent Group.
In a stock exchange filing, Adani Total said it will pick up this 5% stake for more than Rs 3.69 crore (around $505,000). Torrent Gas will pick up its stake for the same amount.
“IGX envisions to play a key role in the development of India’s gas market which is aligned with the government’s vision to increase the share of gas in the energy mix from 6% to 15% by 2030,” company director Rajesh Mediratta said.
Torrent Gas director Jinal Mehta said the investment in the power trading marketplace is in line with the company’s strategy of enhancing its overall footprint in India’s energy sector.
IGX says it received authorisation last month from the Petroleum and Natural Gas Regulatory Board under the Gas Exchange Regulations, 2020. It currently has 16 members and more than 500 registered clients along with three physical hubs across Gujarat and Andhra Pradesh.
Shares of Adani Total Gas were trading 0.81% up at Rs 360 apiece at the time of writing this report, while the Indian Energy Exchange was trading 1.08% down at Rs 238 apiece.
The former reported consolidated net sales of Rs 1,990.9 crore for the 2019-20 financial year, with net profits of Rs 436.32 crore. IEX reported net sales of Rs 257 crore and profits of Rs 175.7 crore on a consolidated basis for the same period.