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Gujarat Gas jumps on business consolidation plan

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Capital Market
Last Updated : Feb 25 2014 | 11:55 PM IST

Gujarat Gas Company jumped 8.71% to Rs 241.50 at 10:21 IST on BSE after the company said its board approved the consolidation of city gas distribution business.

The company made the announcement after market hours on Monday, 24 February 2014.

Meanwhile, the BSE Sensex was up 66.83 points, or 0.32%, to 20,878.27.

On BSE, so far 47,000 shares were traded in the counter, compared with an average volume of 4,042 shares in the past one quarter.

The stock hit a high of Rs 253.35 and a low of Rs 226.60 so far during the day. The stock hit a 52-week high of Rs 305.80 on 19 November 2013. The stock hit a 52-week low of Rs 159 on 7 August 2013.

The stock had underperformed the market over the past one month till 24 February 2014, sliding 10.10% compared with the Sensex's 1.52% fall. The scrip had also underperformed the market in past one quarter, falling 22.39% as against Sensex's 2.94% rise.

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The mid-cap company has an equity capital of Rs 25.65 crore. Face value per share is Rs 2.

The board of Gujarat Gas Company at the meeting held on 24 February 2014, granted its in-principle approval to the proposed consolidation by way of amalgamation of the company with GSPC Distribution Networks (GDNL), GSPC Gas (GSPC Gas), Gujarat Gas Financial Services (GFSL) and Gujarat Gas Trading Company (GTCL), viz., the companies involved in city gas distribution business, by way of proposed amalgamation.

The board also approved the appointment of KPMG (India) as advisors for conceptualisation and implementation of the proposed scheme of amalgamation. Based on advisor's recommendations, the board will give approval to the final consolidation plan, Gujarat Gas Company said in a statement.

On a consolidated basis, Gujarat Gas Company's net profit rose 29.3% to Rs 90.65 crore on 2.4% rise in net sales to Rs 774.92 crore in Q4 December 2013 over Q4 December 2012.

Gujarat Gas Company, a subsidiary of GSPC Distribution Networks (GDNL), currently distributes approximately 2.8 million metric standard cubic meter per day (mmscmd) of natural gas. The company continues to be India's premier gas distribution company with a proven expertise in distributing gas to the entire range of customers - industrial, commercial, domestic and CNG. The firm distributes gas to about 413,000 industrial, commercial and domestic customers through its pipeline network and CNG to over 200,000 vehicles through 55 retail outlets.

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First Published: Feb 25 2014 | 10:24 AM IST

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