Gujarat Gas shares in focus ahead of shareholder meet on merger with GSPC, GSPL

Shares of Gujarat Gas will be in focus today as the company holds its shareholders' meeting on September 17 to approve the proposed amalgamation scheme between GSPC, GSPL, and Gujarat Gas.

Last year, the boards of GSPL and Gujarat Gas approved the merger of GSPC and GSPL into Gujarat Gas.

Key details for shareholders:

- Shareholders of GSPC will receive 10 shares of Gujarat Gas for every 305 shares held.

- Shareholders of GSPL will receive 10 shares of Gujarat Gas for every 13 shares held.

- For the demerger of the Gas Transmission business (to be merged into the new GSPL Transmission Ltd.), shareholders of Gujarat Gas will get one share of the transmission company for every three shares they hold.

The merger is aimed at simplifying the holding structure and unlocking value for shareholders.

According to swap ratio calculations, GSPL shares have an upside potential of around 7% at current market prices.

Brokerage firm Antique Stock Broking said the merger is value-accretive from day one for Gujarat Gas, as the company will benefit from ₹7,200 crore of carry-forward losses lying with GSPC, in addition to synergy benefits. Further, the trading margin currently charged by GSPC to Gujarat Gas will now be valued at a higher multiple.

Equirus termed it a "well thought-out merger," citing that Gujarat Gas stands to gain from its position as the second-largest gas trading company in India, rising gas consumption, and its integrated presence across the value chain.

Shares of Gujarat Gas closed 1.15% higher on Monday at ₹436, though the stock remains down 14% so far in 2025.