Gujarat State Petronet To Restructure Into Gujarat Gas And GSPL Transmission

Gujarat State Petronet Ltd. announced on Friday a restructuring plan to simplify its corporate structure. Following the restructuring, the company will operate through two main entities: Gujarat Gas Ltd. and GSPL Transmission Ltd.

The restructuring is subject to approval from the Ministry of Corporate Affairs, the National Stock Exchange of India, the BSE, shareholders, and creditors, according to an exchange filing.

The plan involves merging Gujarat State Petroleum Corp., Gujarat State Petronet and GSPC Energy Ltd. with Gujarat Gas. Meanwhile, the gas transmission business will be spun off into GSPL Transmission. This restructuring is expected to enhance business synergies, promote growth, improve efficiency, and better utilise resources, it said.

The shareholders of Gujarat State Petroleum Corp., which is primarily engaged in the business of natural gas, will get 10 shares of Gujarat Gas for 305 shares held in the company. Shareholders of Gujarat State Petronet will get 10 shares of Gujarat Gas for 13 shares held in the company that is engaged in the business of transmission of natural gas through pipelines.

After the demerger of GSPL Transmission, the equities will be listed and admitted to trading on the BSE and the NSE after it receives approval from the regulatory authorities. The shareholders of Gujarat Gas will get one share of GSPL Transmission for every three shares held by the company.

Gujarat State Petronet's stock rose as much as 6.61% during the day to Rs 447 apiece on the NSE. The stock closed 5.56% higher at Rs 442.60 per share, compared with a 0.34% advance in the benchmark Nifty. The share price has risen 60.57% in the last 12 months and 38.27% on a year-to-date basis.