Gujarat Gas Limited , a prominent player in India's gas distribution sector, is set to hold a crucial shareholders' meeting on September 17, 2025, to vote on a proposed three-way merger involving Gujarat State Petroleum Corporation (GSPC) and Gujarat State Petronet Limited (GSPL). The meeting, to be conducted via video conferencing, marks a significant step towards consolidating the state's energy assets.

Merger Terms and Share Swap Ratios

The proposed amalgamation scheme outlines the following share swap ratios:

• GSPC shareholders will receive 10 Gujarat Gas shares for every 305 shares held
• GSPL shareholders will get 10 Gujarat Gas shares for every 13 shares held

Demerger of Gas Transmission Business

As part of the restructuring, the deal includes a demerger of the Gas Transmission business into a new entity, GSPL Transmission Ltd. Under this arrangement:

• Gujarat Gas shareholders will receive one share of the transmission company for every three shares owned

Financial Implications and Expert Opinions

The merger is expected to bring substantial financial benefits to Gujarat Gas:

• Antique Stock Broking highlighted an immediate value creation of ₹7,200.00 crore through carry-forward losses from GSPC
• Additional synergy benefits are anticipated from the consolidation

Equirus, another market analyst, termed it a 'well-structured deal' that is set to strengthen Gujarat Gas's position as India's second-largest gas trading company.

Market Response

The market has shown a positive initial reaction to the merger news:

• Gujarat Gas shares closed 1.15% higher at ₹436.00 on the day of the announcement
• However, it's worth noting that the stock has experienced a 14% decline year-to-date

Shareholder Voting and Regulatory Approval

The upcoming shareholder meeting is a critical step in the merger process:

• Equity shareholders will vote on the proposed scheme of arrangement
• The merger requires approval from the majority of public shareholders, as per SEBI regulations
• Final approval will be subject to the Ministry of Corporate Affairs (MCA) and other regulatory authorities

Conclusion

This strategic merger represents a significant consolidation in Gujarat's energy sector, potentially enhancing Gujarat Gas's market position and financial strength. Shareholders and market watchers will be keenly observing the outcome of the September 17 meeting, which could shape the future landscape of India's gas distribution industry.

Gujarat Gas Limited has emphasized transparency by making all relevant documents, including the detailed notice of the meeting, available on its website and those of the stock exchanges. This move ensures that shareholders have access to all necessary information to make an informed decision on this pivotal corporate action.

Gujarat Gas Limited (GGL), a prominent player in the natural gas distribution sector, has announced a crucial meeting of its equity shareholders scheduled for October 17, 2025. The meeting, to be held virtually at 3:00 PM, will focus on considering and potentially approving a Composite Scheme of Amalgamation and Arrangement.

Key Meeting Details

• Date and Time: October 17, 2025, at 3:00 PM
• Mode: Video Conferencing (VC) / Other Audio Visual Means (OAVM)
• Purpose: To consider and approve the proposed Composite Scheme of Amalgamation and Arrangement

Important Dates for Shareholders

The meeting follows directions from the Ministry of Corporate Affairs (MCA) issued on September 10, 2025. Gujarat Gas has emphasized that the meeting will be conducted in accordance with applicable MCA and SEBI circulars.

Shareholder Participation

Shareholders whose email addresses are registered with the company or depositories will receive the meeting notice and explanatory statements electronically. This move aligns with the ongoing trend of digital communication in corporate governance.

Corporate Governance Update

In a separate announcement, Gujarat Gas informed that the Comptroller & Auditor General of India has appointed M/s. Ashok Chhajed & Associates, Chartered Accountant, Ahmedabad, as the Statutory Auditors of the Company for the Financial Year 2025-26. This appointment, communicated on September 11, 2025, underscores the company's commitment to maintaining robust financial oversight.

Gujarat Gas Limited, a GSPC Group Company and a Government of Gujarat Undertaking, continues to play a significant role in India's natural gas sector. As the company moves forward with its amalgamation plans, shareholders and market observers will be keenly watching the outcomes of the upcoming meeting and its potential impact on the company's future strategic direction.