MUMBAI: The board of Gujarat Gas (GGL) has approved a merger scheme under which Gujarat State Petroleum Corporation (GSPC) & GSPC Energy, and Gujarat State Petronet (GSPL) will be merged into GGL.
The merger outlines the integration of GSPC, GSPL, and GEL with GGL. Under the scheme, Gujarat Gas shareholders will get 1 equity of Rs 10 each in GSPL Transmission for every 3 equity shares of Rs 2 held in GGL.
The scheme also involves the demerger of GGL's gas transmission business, which will be carved out and listed separately as GSPL Transmission (GTL) at a later date.
In an exchange filing, GGL said, the merger aims at fostering business synergies and growth, simplifying the GSPC group holding structure, unlocking shareholder value, enhancing operational efficiency, scaling up the business, and ensuring optimal resource utilisation.
Shareholding under the merger scheme includes the issuance of 10 shares of Rs 2 each in GGL for every 305 equity shares of Rs 1 each held in GSPC.
Similarly, GSPL shareholders will get 10 shares of Rs 2 each in GGL for every 13 shares of Rs 10 held in GSPL. In the new transmission entity, GGL shareholders will receive 1 share of Rs 10 each in GSPL Transmission for every 3 shares of Rs 2 held in GGL.
GSPC is primarily involved in natural gas trading and exploration and production, while GSPL is into natural gas transmission through its pipeline network and GGL is into city gas distribution.
The scheme is subject to regulatory approvals, including those from the corporate affairs ministry, stock exchanges, shareholders, and creditors.
Ahead of the board meeting, the GGL counter closed at Rs 605.50, on August 30 up 0.36 per cent, while the benchmark indices gained much more. Gujarat Gas shares have tanked over 10 per cent in the past month. On the other hand, GSPL shares gained 5.5 per cent to Rs 442.35 on the same day.