The merger-demerger scheme dated 30 August 2024 has been approved by the Boards of Directors of Gujarat State Petroleum Corporation Limited (GSPCL), Gujarat State Petronet Limited (GSPL) and Gujarat Gas Limited (GGL) after the approval of the Government of Gujarat.
According to the merger-demerger scheme announced by the GSPC Group, Gujarat State Petroleum Corporation Limited (GSPCL) and Gujarat State Petronet Limited (GSPL) will be merged into Gujarat Gas Limited (GGL) in the first part of the scheme and Gujarat State Petronet Limited (GGL) in the second part of the scheme today. (GSPL) will be demerged into a new form.
Gujarat State Petroleum Corporation Limited (GSPCL) brief detail
- India's second largest gas trading company supplying gas
- An important public enterprise undertaking of the Government of Gujarat with a strategic location in the oil and gas and energy sector
- Government of Gujarat and Government of Gujarat Public Enterprises share 93.61% in GSPCL
- A not-listed company in the stock market
- Year 1979 Established as Gujarat Petrochemicals Corporation
- Entered Oil and Gas Exploration and Production business in the year 1994
- Diversification into gas trading business in the year 2004
- Sourcing and supplying an average of 14 million metric standard meters cubed natural gas per day
- Imported more than 400 LNG cargoes so far
- In the last five financial years Rs. 100279 crore turnover
- Net profit-after-tax (PAT) of Rs 6518 crore in the last five financial years
- Currently fully debt-free company and AA financial rating by CARE
- Brief details of Gujarat State Petronet Limited (GSPL).
India's second largest gas pipeline and transmission company
- A company promoted by GSPC with the objective of developing natural gas transportation network in Gujarat
- A listed company in the stock market, the current market cap is 23000 crore rupees
- Gujarat State Petronet Limited (GSPL) was established in the year 1998
- Commencement of operations with Hazira-Mora gas pipeline in year 2000
- Gujarat currently has over 2700 km of high-pressure gas pipeline network
- Transmission of an average of 32 million metric standard cubic meters of natural gas per day
- Connection to National High-Pressure Gas Grid
- GSPL India Gasnet Ltd. for the operation of gas pipelines in the North Indian states of Rajasthan, Punjab and Haryana. (GIGL) and operation of 1690 km gas pipeline through it
- GSPL India Transco Ltd. for gas pipeline operations in the states of Andhra Pradesh and Telangana in South India. (GITL) and operation of 365 km gas pipeline through it
- Net profit-after-tax (PAT) of Rs 5242 crore in the last five financial years
- Currently fully debt-free company and AA+ financial rating by CARE
Brief details of Gujarat Gas Limited (GGL).
- India's largest city gas distribution company with gas distribution
- An important public enterprise undertaking of the Government of Gujarat with a strategic location in the gas and power sector
- A listed company in the stock market, the current market cap is Rs. 42000 crores
- Acquisition of Gujarat Gas from British Gas by GSPC Group in the year 2012
- Covering 42 districts in 6 states and 1 union territory of India
- Over 40000 km of steel and polymer gas pipelines
- Over 21 lakh domestic, over 4400 industrial and over 15000 commercial pipe gas connections
- More than 800 CNG pump stations
- Average daily delivery of 9 million metric standard cubic meters of natural gas
- 71412 crore turnover in the last five financial years
- 6442 crores in net profit-after-tax (PAT) in the last five financial years
- Currently fully debt-free company and AAA financial rating by CARE, India Rating and CRISIL
GSPC Group Merger-Demerger Scheme
- The transmission business will be made independent by consolidating the oil-gas business under the GSPC group
- So that the valuable development opportunities emerging in the oil-gas and power sectors can be availed.
- Re-structuring of the Group taking into account the energy requirements of a developed India @47
- The merger of GSPC with Gujarat Gas will automatically lead to listing of GSPC in the stock market
- The cross-holding of shares of GSPL and Gujarat Gas will be eliminated so that the share holders of GSPL will get the benefit of value unlocking.
- Under the merger-demerger scheme, 100 shares of Gujarat Gas will be allotted for every 130 shares of first GSPL. Moreover, after the listing of GSPL in the new form, additional 33 shares of new GSPL will be available.
- It will take around 9 to 10 months to implement the entire scheme of merger-demerger after obtaining approvals from SEBI and other statutory provisions.
Also read: Stock crash: This stock may fall to Rs 19, 93% price has broken, expert says: sell
. Source
