CRISIL Ratings stated that the rating action follows the recent announcement by the company on the scheme of amalgamation announced by the parent companies of GGL ' Gujarat State Petroleum Corporation (GSPC) and Gujarat State Petronet Limited (GSPL). As per the announcement, GSPC and GSPL are to be merged into GGL. However, the gas transmission business will subsequently be carved out and listed as a separate entity, GSPL Transmission Limited (GTL), which will not be a part of GGL, post successful completion of the scheme of arrangement. The scheme has been approved by the board of the respective companies and is awaiting requisite regulatory and other approvals and could take 3-4 quarters for completion. CRISIL Ratings notes that GSPC, which undertakes natural gas trading business, is the country's second largest gas trading company and has healthy financial profile with nil debt since fiscal 2023. However, CRISIL Ratings is yet to fully assess its credit profile and the potential impact of its merger with GGL, as some of the critical information related to GSPC's business is awaited. Timely receipt of the required information as well clarity on other important business and financial parameters will be important for resolution of the rating watch. Furthermore, CRISIL Ratings understands that there is a high likelihood of successful completion of the scheme of amalgamation given the potential synergy benefits and valuation gains for the shareholders. However, further developments on the merger process will be monitorable. The rating by CRISIL Ratings on the bank facilities of GGL continues to reflect strong financial risk profile, backed by healthy cash accrual and negligible reliance on external debt. The rating also derives comfort from the company's sizeable scale of operations as the largest city gas distribution (CGD) entity in India. These rating strengths are however partially offset by its exposure to volatility in re-gasified liquefied natural gas (R-LNG) and domestic natural gas prices, risk related to setting up CGD networks in the newer geographical areas (GAs) in a timely and cost-efficient manner and exposure to regulatory risks. Gujarat Gas is India's largest CGD company by gas sales volume. It has 27 CGD licenses spread across 44 districts in 6 states and 1 union territory across Gujarat, Maharashtra, Rajasthan, Haryana, Punjab and Madhya Pradesh and Union Territory of Dadra & Nagar Haveli. The scrip slipped 1.86% to currently trade at Rs 642 on the BSE. Powered by Capital Market - Live

The proposal involves merging Gujarat State Petroleum Corporation (GSPC), Gujarat State Petronet (GSPL) and GSPC Energy (GEL) with GGL. As part of this restructuring, GGL's Gas Transmission Business will be demerged and listed separately as GSPL Transmission Limited (GTL) on stock exchanges. The scheme also outlines specific shareholding arrangements for current shareholders of GSPL and GSPC. Under the approved arrangement, GGL will issue 10 fully paid equity shares of Rs 2 each for every 305 fully paid equity shares of Re 1 each held by the shareholders in GSPC. GGL will also issue 10 fully paid equity shares of Rs 2 each for every 13 fully paid equity shares of Rs 10 each held by the shareholders in GSPL. The demerger of the gas transmission business would involves issuance of 1 fully paid equity share of Rs 10 each of GTL for every 3 fully paid equity shares of Rs 2 each held by the shareholders in GGL. GGL stated that the merger of GSPC with itself, by combining the inter-linked businesses, will unlock business synergies, amplifying the scale of operations and improving efficiency due to optimum utilisation of resources. The elimination of related party transactions will improve GGL's EBITDA and RoCE. The synergistic benefit will also increase the market share of gas trading business while enabling focused growth strategies in other Energy sectors. It further said that the merger of GSPL with GGL and subsequent demerger of the natural gas transmission business will lead to simplification of the existing layered structure between GSPL and GGL. The main objective of demerger is to ensure adherence to the regulatory compliance and enable potential value unlocking for GSPL shareholders and enable the business to grow independently. The resulting company, namely, GSPL Transmission (GTL), will have equity shares listed on the stock exchange. Overall, over the years, the GSPC group has grown manifold, with diverse business presence across the entire natural gas value chain. Each of the companies enjoy leadership market position in their respective domain and inherent synergies are present amongst each of the group companies. At this point in time, the management found it prudent to scale up the companies and consolidate the existing businesses with the main objective to simplify the layered structure in pursuance to which the board has today approved the scheme. This scheme will firmly empower GGL and GTL to independently pursue their growth strategies with sharper focus, avail internal synergies, and ultimately increase their scale of operations. The management's business growth projections for GGL estimate it to become one of India's largest integrated players with presence in gas trading & city gas distribution business. GGL will be able to better leverage the combined assets and expand capital base all put together, enhancing profitability and return ratios on account of varied gas sourcing portfolios. The cash flow generated by the combined businesses can be deployed more efficiently in future to fund organic/inorganic opportunities,' the company said in a statement. Gujarat Gas is the largest city gas distribution company in India. The company has a network of -39,000 km of gas pipeline, distributing approx. 9.7 mmscmd of natural gas. The company operates more than 800 CNG stations and has connected more than 21.15 lakh households in six states and one union territory. Powered by Capital Market - Live

Godrej Agrovet Ltd, Radico Khaitan Ltd, Relaxo Footwears Ltd, Uno Minda Ltd are among the other stocks to see a surge in volumes on BSE today, 02 September 2024.Gujarat Gas Ltd notched up volume of 5.67 lakh shares by 10:45 IST on BSE, a 14.39 fold spurt over two-week average daily volume of 39394 shares. The stock rose 10.02% to Rs.667.50. Volumes stood at 47433 shares in the last session.Godrej Agrovet Ltd saw volume of 63293 shares by 10:45 IST on BSE, a 6.63 fold spurt over two-week average daily volume of 9547 shares. The stock increased 5.80% to Rs.829.50. Volumes stood at 6150 shares in the last session.Radico Khaitan Ltd clocked volume of 77590 shares by 10:45 IST on BSE, a 2.91 times surge over two-week average daily volume of 26697 shares. The stock gained 3.66% to Rs.2,016.15. Volumes stood at 1.19 lakh shares in the last session.Relaxo Footwears Ltd saw volume of 15553 shares by 10:45 IST on BSE, a 2.76 fold spurt over two-week average daily volume of 5644 shares. The stock increased 2.82% to Rs.819.80. Volumes stood at 2806 shares in the last session.Uno Minda Ltd saw volume of 66237 shares by 10:45 IST on BSE, a 2.53 fold spurt over two-week average daily volume of 26180 shares. The stock increased 2.16% to Rs.1,199.00. Volumes stood at 77996 shares in the last session.Powered by Capital Market - Live

Gujarat Gas announced that the 12th Annual General Meeting (AGM) of the company will be held on 26 September 2024.Powered by Capital Market - Live

Gujarat Gas has fixed 09 September 2024 as record date for dividend. Powered by Capital Market - Live

Gujarat Gas announced the appointment of S. J. Haider, IAS, (DIN: 02879522) Additional Chief Secretary, Energy & Petrochemicals Department, Government of Gujarat, as Additional Director on the Board of Gujarat Gas Limited w.e.f. 13 August 2024. Powered by Capital Market - Live

Net profit of Gujarat Gas rose 53.32% to Rs 329.78 crore in the quarter ended June 2024 as against Rs 215.09 crore during the previous quarter ended June 2023. Sales rose 17.69% to Rs 4450.30 crore in the quarter ended June 2024 as against Rs 3781.51 crore during the previous quarter ended June 2023. ParticularsQuarter EndedJun. 2024Jun. 2023% Var. Sales4450.303781.51 18 OPM %12.0410.26 - PBDT566.39404.47 40 PBT443.30289.36 53 NP329.78215.09 53 Powered by Capital Market - Live

Net profit of Gujarat Gas rose 53.14% to Rs 330.71 crore in the quarter ended June 2024 as against Rs 215.95 crore during the previous quarter ended June 2023. Sales rose 17.69% to Rs 4450.30 crore in the quarter ended June 2024 as against Rs 3781.51 crore during the previous quarter ended June 2023. ParticularsQuarter EndedJun. 2024Jun. 2023% Var. Sales4450.303781.51 18 OPM %12.0410.26 - PBDT567.32405.33 40 PBT444.23290.22 53 NP330.71215.95 53 Powered by Capital Market - Live