The completion of the merger between two state-run gas distribution companies, GSPC Gas Company and Gujarat Gas Company, has resulted in the emergence of Gujarat Gas Ltd — a single largest city gas distribution entity in the country with over one million customers.
Gujarat Gas Company (GGCL) has announced the completion of the amalgamation of GSPC Gas Company, GGCL, Gujarat Gas Financial Services and Gujarat Gas Trading Company with GSPC Distribution Networks (GDNL).
Further, the restructuring of the share capital of GDNL has been completed, a statement said here.
Gujarat Gas Ltd’s customers are spread across 19 districts of Gujarat and the Union Territory of Dadra Nagar Haveli and Thane GA (including Palghar district) of Maharashtra.
The company has 10,23,000 domestic households consumers, 2,750 industrial customers, 14,000 commercial customers and 230 CNG stations selling 7,65,000 kg of CNG a day. New Delhi's Indraprastha Gas has a customer base of about 5,50,000 (including domestic, industrial and commercial); Mumbai’s Mahanagar Gas has over 7 lakh customers, while Adani Gas has close to 200,000 customers.
“The total daily gas sales volume has reached up to 6.5 million standard cubic metre a day (mscmd), highest in the country.
“With this amalgamation, the newly formed company’s market capitalisation stands at ₹10,600 crore (considering closing price on National Stock Exchange as on May 15, 2015),” the statement said.
Gujarat Gas shares closed at ₹830.15 on Saturday, a tad above the previous closing on the National Stock Exchange.
Saurabhbhai Patel, Minister for Finance, Energy and Petrochemicals, Government of Gujarat, said: “Gujarat has been the leader in moving to a gas-based economy and with this amalgamation we will now help to develop city gas distribution infrastructure in other States.”
In the coming days, Gujarat Gas will add over 200,000 domestic household connections and install more than 25 new CNG stations in Gujarat.