Gujarat Gas Company's shares climbed as much as six per cent today after it received board approval for merger with other state run firms involved in city gas distribution business.
Shares of the company jumped six per cent to close at Rs 235.50 on the BSE while the gain was more than five per cent on the NSE where it ended the day at Rs 235.35.
The scrip had surged over 14 per cent during the day.
On the BSE, Gujarat Gas shares opened at Rs 227 and touched an intra-day high of Rs 253.35. The intra-day low was Rs 226.60.
Opening at Rs 227.50 on the NSE, the scrip reached an intra-day high of Rs 252.85 while intra-day low was Rs 227.
Gujarat Gas, in a regulatory filing, said its board of directors has granted in-principle approval to the proposed consolidation by way of amalgamation of the company with other companies involved in City Gas Distribution business.
The announcement came after market trading hours yesterday.
As per the filing, GSPC Distribution Networks Ltd (GDNL), GSPC Gas Ltd (GSPC Gas), Gujarat Gas Financial Services Ltd (GFSL) and Gujarat Gas Trading Company Ltd (GTCL) would be merged with Gujarat Gas Company Ltd.
According to market analysts, the proposed merger with city gas distributors would boost Gujarat Gas' valuations in line with those of state-run Indraprastha Gas Ltd.