Merger of GSPL with Gujrat Gas Ltd.(GGL)
Shareholders will be allotted 10 shares of GGL for every 13 shares held of GSPL. GSPL owns about 54% stake in GGL. Gujarat State Petroleum Corporation Limited(GSPC) which owns 37% in GSPL will also be merged in GGL.
Transmission business of GSPL will be finally demerged into GSPL Transmission Limited (GTL) which will be subsequently listed on the stock exchange. Shareholders will be given 1 share of GTL for every 3 held in GGL.
Press Release
Scheme of Arrangement
Investor Presentation
Stock of GSPL has already run up 30% in last week, now it is almost priced ideally for the 10 to 13 swap ratio. Assuming GGL at 600 per share, GSPL should be priced at 461 per share, current price of GSPL is 443 per share.
There is a investor call at 3.00 pm on 31st August to discuss this restructuring.
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