Shares of Adani Gas surged 18 percent in opening trade on Monday after the company informed that French energy giant Total SA would buy a 37.4 percent stake in the Indian gas distribution company.

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The stock rose as much as 18 percent to Rs 162.40 per share on BSE. At 9:20 am, the stock was trading 12 percent higher at Rs 154 as compared to 0.4 percent or 152 points rise in BSE Sensex at 38,279.

Total will launch an open offer to buy up to 25.2 percent in Adani Gas from public shareholders at Rs 149.63 per share, valuing the stake at Rs 4,147 crore. The French company will buy the remaining 12.2 percent from Adani Family, according to a statement.

Adani Family and Total shareholders will ultimately hold 37.4 percent each and

public shareholders will hold the remaining 25.2 percent, noted the news release.

As part of the deal, Total and Adani will also establish a joint venture to market LNG in India and Bangladesh. The JV will develop regasification terminals including Dhamra LNG.

As part of the existing JV, Adani and Total will target to build a fuel retail network of 1,500 retail stations, on the main roads of the country, such as highways and intercity connections.

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First Published:Oct 14, 2019 9:26 AM IST