Gujarat Gas Limited (GGL) has announced that the GSPC Group’s mega Scheme of Arrangement became effective on May 1, 2026. The strategic restructuring involves the merger of GSPC and GSPL into GGL, while the gas transmission business has been demerged into the newly formed GTL. This move aims to streamline group operations, unlock shareholder value, and strengthen GGL’s position as an integrated energy player with plans to rename the entity to Gujarat Energy Limited.
Strategic Corporate Restructuring
Following the receipt of the final order from the Ministry of Corporate Affairs, the long-awaited consolidation of the GSPC Group has officially taken effect. As of May 1, 2026, Gujarat State Petroleum Corporation (GSPC) and Gujarat State Petronet Limited (GSPL) have successfully merged into Gujarat Gas Limited (GGL). Simultaneously, the gas transmission business has been spun off into a separate entity, GSPL Transmission Limited (GTL).
Future Outlook and Business Expansion
With this merger, GGL is set to evolve into a comprehensive energy powerhouse. Beyond its core City Gas Distribution business, the company will now manage Gas Trading, Exploration & Production, and Wind Power Generation. To reflect this expanded scope, GGL will soon be rebranded as Gujarat Energy Limited. The company also gains a diversified investment portfolio, including interests in gas-based power generation, LNG terminals, and information technology services.
Shareholder Allotment and Equity Structure
The share exchange ratios for the restructuring have been finalized. Shareholders of GSPC will receive 10 equity shares of GGL for every 305 shares held. GSPL shareholders will receive 10 equity shares of GGL for every 13 shares held. Additionally, existing GGL shareholders will receive 1 equity share of GTL for every 3 shares held in GGL. The record date for the GGL share allotment is set for May 12, 2026, with the GTL record date to be announced shortly.
Impact on GTL and Pipeline Infrastructure
The newly formed GTL will operate as a pure-play gas transmission entity, managing nearly 2,800 kilometers of pipeline network. This focused approach is designed to increase operational efficiency. Post-allotment, the Government of Gujarat and associated controlled entities will hold approximately 56% of the equity in both GGL and GTL, ensuring continued stability while unlocking value for public shareholders.
Source: BSE
