Gujarat Gas shareholders will receive 1 equity share of Rs 10 each in GSPL Transmission Limited (GTL) for every 3 equity shares of Rs 2 they hold in Gujarat Gas Limited (GGL).
Gujarat Gas shares have fallen by more than 10 percent over the past month.
On August 30, the board of Gujarat Gas Limited (GGL) sanctioned a comprehensive scheme of arrangement and amalgamation involving Gujarat State Petroleum Corporation Limited (GSPC), GSPC Energy Limited (GEL), and Gujarat State Petronet Limited (GSPL). The plan outlines the merger of these entities into GGL, alongside the demerger of GGL’s Gas Transmission Business.
Under the scheme, GGL’s Gas Transmission Business will be spun off into a new entity, GSPL Transmission Limited (GTL), which will be listed separately on the stock exchanges. Shareholders of GGL will receive 1 equity share of Rs 10 each in GTL for every 3 equity shares of Rs 2 held in GGL.
The merger aims to create business synergies, streamline the GSPC Group’s structure, enhance operational efficiency, and unlock shareholder value. The restructuring is expected to expand business scale and optimize resource use.
GSPC is engaged in natural gas trading, exploration, and production, while GSPL operates a pipeline network for natural gas transmission. GGL specializes in city gas distribution and managing gas delivery from supply points to end-users.
The proposed scheme requires regulatory approvals from the Ministry of Corporate Affairs, National Stock Exchange of India, BSE, SEBI, as well as from shareholders and creditors. On August 30, GGL’s shares closed at Rs 605.50, marking a 0.36 percent increase. GSPL shares ended at Rs 442.35, up 5.50 percent on the same day.
Shareholding adjustments under the scheme include issuing 10 equity shares of Rs 2 each in GGL for every 305 equity shares of Rs 1 each held in GSPC. GSPL shareholders will receive 10 equity shares of Rs 2 each in GGL for every 13 equity shares of Rs 10 held in GSPL.
Gujarat Gas shares have dropped over 10 percent in the past month.
