Earlier on Friday (August 30), GGL board approved a scheme of arrangement and amalgamation, involving GSPC, GSPC Energy Limited (GEL), and GSPL merging into GGL.
The arrangement outlines the integration of GSPC, GSPL, and GEL with GGL, according to reports.
The arrangement and amalgamation scheme additionally involves the demerger of GGL's Gas Transmission Business, which will be carved out and listed separately as GSPL Transmission Limited (GTL) on stock exchanges, reports Moneycontrol.
The proposal specifies the shareholding arrangements for the existing shareholders of GSPL and GSPC, as per reports.
GGL said in an exchange filing that the proposed merger aims to foster business synergies and growth, simplify the GSPC Group Holding Structure, unlock shareholder value, enhance operational efficiency, expand business scale, and ensure optimal resource utilization.
The Gujarat State Petroleum Corporation, or GSPC, is primarily involved in natural gas trading and exploration and production activities, while the Gujarat State Petronet Limited, or GSPL, operates in the natural gas transmission sector through its pipeline network, and GGL focuses on city gas distribution and managing the delivery of gas from supply points to end-users, according to Moneycontrol.
GGL's restructuring scheme, however, is subject to regulatory approvals, including those from the Ministry of Corporate Affairs, National Stock Exchange of India, BSE, SEBI, shareholders, and creditors, as per reports.