Two companies of the state-owned Gujarat State Petroleum Corporation (GSPC) Group – Gujarat Gas Company Limited and GSPC Gas Company Ltd – have been amalgamated, to form India’s largest City Gas Distribution (CGD) company that has been christened as Gujarat Gas Limited, with a market capitalisation of Rs 10,600 crore.
The new entity will also have India’s largest customer base which includes 10.23 lakh households, 2750 industrial customers, 14000 commercial customers and 230 CNG stations selling 7.65 lakh kilograms of CNG (Compressed Natural Gas) every day.
“The composite scheme of arrangement in nature of amalgamation between Gujarat Gas Company Ltd and GSPC Gas Company Ltd has been approved and a new amalgamated entity, Gujarat Gas Ltd has now emerged. The arrangement in nature of amalgamation of GSPC Gas Company Ltd, Gujarat Gas Company Limited, Gujarat Gas Financial Services Ltd and Gujarat Gas Trading Company Ltd with GSPC Distribution Networks Ltd and restructuring of share capital of GSPC Distribution Networks Ltd has been completed,” stated an official release on Saturday.
“With this amalgamation, the newly formed company’s market capitalisation stands at Rs 10,600 crore (considering closing price on National Stock Exchange on May 15, 2015),” it added.
While GSPC Gas has always been a state-owned company, Gujarat Gas Company Ltd was a public-listed company that was earlier part of the UK’s BG Group. The controlling stake in this company was acquired by GSPC Group in June 12, 2013, through it’s subsidiary GSPC Distribution Networks Ltd.
Gujarat Minister for Finance, Energy and Petrochemicals, Saurabh Patel said, “Under the aegis of Government of Gujarat, this new amalgamated company, Gujarat Gas Limited, will continue to expand its reach within and outside of Gujarat to convert more industrial, vehicular and residential users to environment friendly gas.” The new entity is currently spread across 19 districts in Gujarat, Dadra Nagar Haveli and Thane GA (including Palghar district) of Maharashtra.
In the coming days, Gujarat Gas Ltd will add more than 2 lakh domestic household connections and install more than 25 new CNG stations in Gujarat, the release added.