GSPC Group Restructuring Effective from May 1, 2026: GGL Merger, GTL Demerger, Share Swap Ratios Announced

Gujarat Gas Limited (GGL), India’s largest City Gas Distribution company, has announced that the long-awaited Scheme of Arrangement involving the GSPC Group has come into effect from May 1, 2026. The development follows the receipt of the final approval order from the Ministry of Corporate Affairs (MCA) on April 17, 2026.

The restructuring, originally announced on August 30, 2024 and followed by an investor call on August 31, 2024, received strong support from stakeholders. Proxy advisory firms SES and IiAS recommended the scheme, and shareholders of both GGL and Gujarat State Petronet Limited (GSPL) approved it with a significant majority in October 2025. The market had also reacted positively at the time, with notable gains in the shares of GGL and GSPL.

Under the scheme, Gujarat State Petroleum Corporation (GSPC) and GSPL have been merged into GGL, while the gas transmission business has been demerged into GSPL Transmission Limited (GTL). With this transformation, GGL is set to emerge as an integrated energy company with a diversified portfolio spanning gas trading, exploration and production, wind power generation, and its core City Gas Distribution business. Reflecting its expanded scope, GGL will soon be renamed Gujarat Energy Limited.

Post-restructuring, GGL will also hold investments across multiple verticals including gas-based power generation through GSEG and GPPC, LNG infrastructure via GSPC LNG Limited, city gas distribution through Sabarmati Gas Limited, and IT-enabled services through Guj Info Petro Limited. This diversification is expected to strengthen its position in India’s evolving energy landscape.

Simultaneously, GTL will operate as a focused, pure-play gas transmission company. It will manage approximately 2,800 km of pipeline network in Gujarat and hold stakes in key cross-country pipeline projects such as GSPL India Gasnet Limited and GSPL Indian Transco Limited. GTL is also expected to be listed on both BSE and NSE in due course.

A company source described the development as a landmark moment for Gujarat’s energy sector, highlighting that the restructuring aligns with the Government of Gujarat’s long-term vision established in 2024. The integration provides GGL access to a larger gas trading portfolio, which will support its ongoing domestic PNG penetration drive aimed at making Gujarat an LPG-free zone. At the same time, GTL’s focused structure is expected to improve operational efficiency in the transmission segment.

The record date for allotment of GGL shares to shareholders of GSPC and GSPL has been set as May 12, 2026. The record date for allotment of GTL shares to GGL shareholders will be announced subsequently.

As per the approved share exchange ratios, GSPC shareholders will receive 10 equity shares of GGL for every 305 shares held, while GSPL shareholders will receive 10 equity shares of GGL for every 13 shares held. Additionally, GGL shareholders will receive 1 equity share of GTL for every 3 equity shares held, following the demerger of the transmission business.

After the completion of share allotments, the Government of Gujarat will hold approximately 38.80 per cent directly in both GGL and GTL. Including other government-controlled entities, the combined holding will stand at around 56 per cent, with the remaining stake held by public shareholders.

The restructuring aims to streamline the group’s holding structure, unlock value for shareholders, and ensure regulatory compliance by housing the gas transmission business within an independent entity. With the scheme now effective, the GSPC Group is positioned to achieve operational synergies and drive long-term growth across its energy businesses.

Disclaimer: The article is for informational purposes only and not investment advice.