GSPL to Merge with GSPC and GEL into Gujarat Gas Limited

Gujarat State Petronet Limited (GSPL) has approved plans to merge with Gujarat State Petroleum Corporation (GSPC) and GSPC Energy Limited (GEL) into Gujarat Gas Limited (GGL). The restructuring aims to enhance business efficiency and simplify the holding structure of these entities.

In a significant move aimed at enhancing business synergy and operational efficiency, Gujarat State Petronet Limited (GSPL) has greenlit a restructuring plan to merge with Gujarat State Petroleum Corporation (GSPC) and GSPC Energy Limited (GEL) into Gujarat Gas Limited (GGL). The decision, announced post a crucial board meeting, also aims to simplify the holding structure of these entities.

The board of directors of all involved companies sanctioned 'The Scheme of Arrangement' during meetings held on August 30, 2024. As per the merger terms, GSPC shareholders will obtain 10 shares of Gujarat Gas for every 305 shares they hold, while GSPL shareholders will receive 10 shares for every 13 shares held.

Post-merger, a focused gas transmission unit named GSPL Transmission will be carved out and listed separately on stock exchanges, allowing for streamlined operations and enhanced value transparency for shareholders. The merger aims to achieve operational scale by aligning gas sourcing, trading, and distribution activities, thereby potentially improving profitability and competitiveness.

(With inputs from agencies.)