IndianOil-Adani Gas JV to Raise $161 Million via Convertible Bonds

IndianOil-Adani Gas Pvt Ltd plans to raise ₹13.78 billion ($161 million) through compulsorily convertible debentures (CCDs), as per news reports. The fundraising will take place in 4 tranches, and CCDs will convert into equity on a fixed date.

As per news reports, the company is expected to raise ₹350 crore each from CCDs maturing in 1, 2, and 3 years. The remaining ₹328 crore will be raised through CCDs due in 4 years. Interest on these instruments will be market-determined. SBI Capital Markets Ltd is the arranger for the deal.

Use of Hybrid Instruments

The fundraising adds to the recent trend of using CCDs and similar instruments in India. Reports suggest this could be one of the largest such deals this year, as the last major hybrid issue of this size was a ₹900 crore offering by ATL HVDC in March 2025.

About IndianOil-Adani Gas

IndianOil-Adani Gas is a joint venture between Indian Oil Corporation and Adani Total Gas Ltd. The company was founded to deliver piped natural gas to industrial, commercial, and residential sectors, as well as compressed natural gas to the transportation industry. Its recent capital raise is well-timed, coinciding with the government's objective to elevate the share of natural gas in the energy mix from its current 6% to 15% by 2030.

For FY24, IndianOil-Adani Gas reported a 23% increase in net profit to ₹44.5 crore. Revenue from operations during the same period dropped by 14%.

Read More: Adani Group Set for Major Expansion with $100 Billion Capex!

Conclusion

With SBI Capital Markets managing the process, IndianOil-Adani Gas is set to raise capital through a phased convertible instrument. The deal supports the gas infrastructure operations.

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