Gandhinagar: After the approval of the Government of Gujarat, Board of Directors of Gujarat State Petroleum Corporation Limited (GSPCL), Gujarat State Petronet Limited (GSPL) and Gujarat Gas Limited (GGL) have approved the Merger-Demerger Scheme on 30^th August 2024. As per the Merger-Demerger Scheme announced by the GSPC Group, in the first part, Gujarat State Petroleum Corporation Limited (GSPCL) and Gujarat State Petronet Limited (GSPL) will be merged into Gujarat Gas Limited (GGL) and in the second part the same scheme, Gujarat State Petronet Limited (GSPL) will be demerged into a new form.

Brief details of Gujarat State Petroleum Corporation Limited (GSPCL).

• India’s second largest gas trading company supplying gas

• An important public sector undertaking of the Government of Gujarat strategically positioned in the oil and gas and energy sector.

• Government of Gujarat and its Public Enterprises hold 93.61% shareholding in GSPCL

• Not-listed company in stock market

• Established in the year 1979 as Gujarat Petrochemicals Corporation

• Entered Oil & Gas exploration and production business in the year 1994

• Diversified into gas trading business in the year 2004

• Sourcing and supplying an average of 14 million metric standard cubic meters (MMSCMD) of natural gas per day

• Imported more than 400 LNG cargoes so far

• Turnover of Rs. 1,00,279 crore in the last five financial years

• Net profit after tax (PAT) of Rs. 6,518 crore in the last five financial years

• Currently debt-free company with 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

• Stock market listed company with current market cap Rs. 23,000 crores

• Established in the year 1998

• Commenced operations with Hazira-Mora gas pipeline in the year 2000

• Has developed the high-pressure gas pipeline network of more than 2,700 km in Gujarat

• Average transmission volume of 32 million metric standard cubic meters (MMSCMD) natural gas per day

• Well-connection to the National High-Pressure Gas Grid

• For operations of gas pipelines in North Indian states of Rajasthan, Punjab and Haryana has promoted subsidiary company the GSPL India Gasnet Ltd. (GIGL) and has developed gas pipeline of 1,690 km

• For operations of gas pipelines in South Indian states of Andhra Pradesh and Telangana has promoted subsidiary company the GSPL India Transco Ltd. (GITL) and has developed gas pipeline of 365 km

• Net profit after tax (PAT) of Rs. 5,242 crore in the last five financial years

• Currently debt-free company with 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 sector undertaking of the Government of Gujarat with a strategic position in the gas and power sector

• Stock market listed company with current market cap Rs. 42,000 crores

• GSPC acquired Gujarat Gas from the British Gas in the year 2012

• Covering 42 districts in 6 states and 1 union territory of India

• Over 40,000 km of steel and polymer gas pipelines

• More than 21 lakh domestic, more than 4,400 industrial and more than 15,000 commercial pipe gas connections

• More than 800 CNG pump stations

• Distribution of average 9 million metric standard cubic meters (MMSCMD) of natural gas per day

• Turnover of Rs. 71,412 crore the last five financial years

• Net profit after tax (PAT) of Rs. 6,442 crore in the last five financial years

• Currently debt-free company with AAA financial rating by CARE, India Rating and CRISIL

GSPC Group Merger-Demerger Scheme

• Oil-gas business under the GSPC group will be consolidated and the transmission business will be made independent so as to tap into the immense growth opportunities emerging in the oil-gas and power sectors.

• Re-structuring of the Group considering the energy requirements of a Viksit Bharat @47.

• Merger of GSPC with Gujarat Gas will lead to automatic listing of GSPC in the stock market.

• Share cross-holding of GSPL and Gujarat Gas will be eliminated so that the share holders of GSPL will benefit from the value unlocking.

• Under the Merger-Demerger Scheme, first, 100 shares of Gujarat Gas will be allotted for every 130 shares of GSPL. In addition, 33 shares of new GSPL will be allotted after the listing of GSPL in the new form.

• It will take around 9 to 10 months to get the approvals under SEBI and other legal provisions and to implement the complete scheme of merger-demerger.