Gujarat Gas announces GSPC Group’s scheme of arrangement takes effect

Arunika Jain — Fri, 01 May 2026 13:21:21 +0000

Gujarat Gas Limited (GGL), India’s largest City Gas Distribution company, has announced that the Scheme of Arrangement involving GSPC Group has come into effect as of 1st May 2026. The company had previously received the Final Order from the Ministry of Corporate Affairs (MCA) sanctioning the Scheme on 17th April 2026.

The Scheme of Arrangement, initially announced on 30th August 2024 and approved by the Board of Directors of the respective companies, involves the merger of Gujarat State Petroleum Corporation (GSPC) and Gujarat State Petronet Limited (GSPL) into GGL. Additionally, the gas transmission business has been demerged into GSPL Transmission Limited (GTL). This restructuring aims to strengthen GGL as an integrated energy company, expanding its operations beyond City Gas Distribution to include Gas Trading, Exploration & Production, and Wind Power Generation.

The market had responded positively to the initial announcement, with shares of GGL and GSPL experiencing significant gains. The Scheme also received favourable recommendations from Proxy Advisors SES and IiAS, and was approved by the shareholders of GSPL and GGL in October 2025.

With the Scheme now effective, GGL will also have investments in diversified businesses such as gas-based power generation, LNG terminals, city gas distribution, and IT-enabled services. Meanwhile, GTL is set to become a pure-play gas transmission entity, managing approximately 2800 KMs of gas pipeline network in Gujarat and investments in two cross-country pipelines.

A company source commented on the development, stating, “This is a very significant moment in Gujarat’s energy sector scenario. The Scheme will strengthen Gujarat’s energy sector by implementing the farsighted and visionary decision of the Government of Gujarat taken way back in 2024.”

The Record Date for the allotment of shares by GGL to the shareholders of GSPC and GSPL is set for 12th May 2026. The Record Date for the allotment of shares by GTL to the shareholders of GGL will be announced later. Under the share exchange ratio, GSPC shareholders will receive 10 equity shares of GGL for every 305 equity shares held, while GSPL shareholders will receive 10 equity shares of GGL for every 13 equity shares held. Additionally, GGL shareholders will receive 1 equity share of GTL for every 3 equity shares held.

Following the completion of the allotment, the Government of Gujarat will hold approximately 38.80% directly, and together with other government-controlled entities, will hold about 56% in both GGL and GTL.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

GSPC | Business Upturn

Gujarat Gas announces GSPC Group’s scheme of arrangement takes effect