GSPC, GSPL merge into Gujarat Gas; entity to be renamed Gujarat Energy Limited

Demerger of pipeline network business

The other major development in this rearrangement is that the gas transmission business of GSPL has been completely separated from the newly-merged entity, and now stands demerged into another company called GSPL Transmission Limited (GTL), which will soon be listed on the BSE and the NSE, Gujarat Gas said in a statement on Friday.

“GTL has become a pure-play gas transmission entity housing close to 2,800 KMs of gas pipeline network in Gujarat and investments in two cross-country pipelines – GSPL India Gasnet Limited and GSPL Indian Transco Limited,” said the statement.

Shareholding structure

Earlier, the Gujarat government held 55.65% of the various GSPC Group companies. GSPC itself held 37.63% of GSPL, which, in turn, held 54.17% shareholding of GGL.

Under the new shareholding structure, the Gujarat government will own 38.80% of Gujarat Gas Limited (GGL), the merged entity, which includes 25.86% of its own stake. Gujarat State Investment Limited (GSIL) will be transferring its own 12.90% shareholding to the state government.

In total, the holding of the Government of Gujarat (GoG) together with other GoG-controlled entities would be approximately 56% in both the listed entities, GGL and GTL, with the balance to be held by public shareholders.

The statement quoted an official: “The Scheme will strengthen Gujarat’s energy sector by implementing the farsighted and visionary decision of the Government of Gujarat taken in 2024. The timing could not have been more opportune since the GGL will now have access to a large gas trading portfolio, strengthening its CGD Business at a time when GGL is enthusiastically undertaking a domestic PNG penetration drive in line with the government’s vision of making Gujarat an LPG-free zone. Simultaneously, GTL will also be able to pursue its pure-play transmission business with better focus and efficiency.”

Backdrop

The Scheme of Arrangement was announced on August 30, 2024, followed by an investors’ call on August 31, 2024, upon approval by the board of directors of the respective companies.

The statement said, “The market had welcomed the development, and the shares of GGL and GSPL both saw significant positive moments following the announcement. The scheme had also been positively recommended by proxy advisors – SES and IiAS – followed by the shareholders of GSPL and GGL approving the scheme with a majority in October 2025.”

The final order from the Ministry of Corporate Affairs (MCA) sanctioning the Scheme was received on April 17, 2026.

Issuance of shares of new entities

A statement from the company said, “While the record date for allotment of shares by GGL to the shareholders of GSPC and GSPL has been set as May 12, 2026, the record date for allotment of shares by GTL to the shareholders of GGL would be announced after completing the allotment of shares by GGL.”

GSPC shareholders will receive 10 equity shares of GGL for every 305 equity shares held in GSPC, while GSPL shareholders will receive 10 equity shares of GGL for every 13 equity shares held in GSPL. Further, the shareholders of GGL will receive one equity share of GTL for every three equity shares held in GGL pursuant to demerger of gas transmission business into GTL and a separate Record Date in this regard will be announced in due course of time.