Gujarat Gas Merges with State Petroleum Firms

Gujarat Gas Limited (GGL) has approved a major restructuring that includes the merger of Gujarat State Petroleum Corporation (GSPC), GSPC Energy Limited (GEL), and Gujarat State Petronet Limited (GSPL) into GGL, aiming to enhance operational synergies and efficiency. The plan will result in the creation of a separate entity, GSPL Transmission Limited, which will handle the gas transmission business, thus simplifying the corporate structure. Shareholders will receive new shares in GGL in exchange for their current holdings in GSPC and GSPL, with the goal of unlocking value and improving market competitiveness. The merger is part of a strategy to optimize resources and leverage combined assets for better profitability and cash flow management. This restructuring is pending regulatory approvals from various bodies, including the Ministry of Corporate Affairs and stock exchanges. Overall, the move aims to position GGL as a more integrated player in the gas distribution and trading sectors in India.