Adani Gas closed at Rs 147.9 on Tuesday, two per cent less from its close on October 15, when the deal was announced. As the company continues to trade at a price higher than peers in the same business, analysts say it's an attractive offer.
“The stock is expensive compared to peers, which makes Total’s offer an attractive one for those who wish to exit. For those who wish to continue holding it, it is a word of caution that the stock is already expensive,” said one who did not wish to be identified.
The share price of Indrapastha Gas and Mahanagar Gas has gained 4 per cent since October 15, to close on Tuesday at Rs 381.6 and Rs 985.8, respectively. “The Adani deal announcement has given a sentimental push to other stocks in the same segment,” said the second analyst quoted earlier.
Adani has a city gas distribution network in Ahmedabad and Vadodara in Gujarat, Faridabad in Haryana and Khurja in Uttar Pradesh. Also, it is in a consortium with Indian Oil in developing a network each at Allahabad, Chandigarh, Ernakulam, Panipat, Daman, Dharwad and Udhamsingh Nagar.
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