Gujarat Gas extend gains on plan to merge with GDNL along with three entities

Gujarat Gas Company is currently trading at Rs. 379.10, up by 1.35 points or 0.36% from its previous closing of Rs. 377.75 on the BSE. The scrip opened at Rs. 381.95 and has touched a high and low of Rs. 382.20 and Rs. 378.50 respectively. The BSE group 'B' stock of face value Rs. 2 has touched a 52 week high of Rs. 426.20 on 21-Apr-2014 and a 52 week low of Rs. 159.00 on 07-Aug-2013. Last one week high and low of the scrip stood at Rs. 426.20 and Rs. 372.00 respectively. The current market cap of the company is Rs. 4,861.00 crore. The promoters holding in the company stood at 73.70% while Institutions and Non-Institutions held 17.80% and 8.50% respectively. Gujarat Gas Company has received its board’s approval for amalgamation of the company along with Gujarat Gas Financial Services (GFSL), Gujarat Gas Trading Company (GTCL), and GSPC Gas Company (GSPC Gas) into GSPC Distribution Networks (GDNL). Gujarat Gas, GFSL, GTCL, and GSPC Gas would be amalgamated with GDNL and all assets and liabilities of Gujarat Gas, GFSL, GTCL and GSPC Gas would be transferred to GDNL. Further, GDNL will issue and allot shares in swap ratio to Gujarat Gas, GFSL, and GSPC Gas. The new amalgamated entity GDNL may be listed in next 6-8 months under a new name. A combined network of the amalgamated entities under GDNL now stands at 16 districts out of 33 districts in Gujarat. The combined volume is now slightly below 8 mmscmd, 1.5 mmscmd of which serves CNG (transport) and PNG (domestic) while rest serves industries. Gujarat Gas, a 65.12 per cent subsidiary of BG Asia, is India’s largest private sector natural gas distribution company in terms of sales volumes, with operations in Gujarat. The company distributes natural gas to domestic, commercial and industrial consumers, and compressed natural gas as automobile fuel, in the cities of Surat, Ankleshwar, Bharuch, and surrounding areas.