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Gujarat Gas Share Price Soars 13.69% to Rs 689.45 on Merger with GSPL, GSPC, and GEL

Gujarat Gas share price surged 13.69% to Rs 689.45 following a merger plan with GSPL, GSPC, and GEL, which will create GTL for the transmission business. GSPL shares rose 1.45%.
Gujarat Gas Share Price Soars 13.69% to Rs 689.45 on Merger with GSPL, GSPC, and GEL

Shares of Gujarat Gas Ltd surged by 14% and Gujarat State Petronet Ltd (GSPL) also saw gains on Monday. This followed news of a merger plan involving Gujarat Gas, Gujarat State Petroleum Corporation (GSPC), GSPL, and GSPC Energy (GEL). 

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According to the plan, these companies will merge into Gujarat Gas, and later, the transmission business will be spun off into a new company called GSPL Transmission Limited (GTL). The whole process is expected to wrap up by August 2025.

Gujarat Gas shares rose by 13.69%, reaching Rs 689.45, while GSPL shares increased by 1.45% to Rs 448.80. The merger will enhance Gujarat Gas’s portfolio, adding profitable gas trading and other operations like renewables and LNG terminals. Meanwhile, GSPL will focus solely on its transmission business after the restructuring.

Approval from SEBI and stock exchanges is expected by December 2024, with other approvals expected by May 2025. After all approvals, shares will be issued, and GSPL trading will halt. Gujarat Gas and GTL shares are set to be listed by August 2025.

The share swap will give GSPC shareholders 10 Gujarat Gas shares for every 305 shares held and GSPL shareholders 10 Gujarat Gas shares for every 13 shares held. The gas transmission business will be spun off into GTL, which will be listed separately.

The merger will enhance Gujarat Gas’s position in the market, boosting its overall business portfolio.

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