Shares of Gujarat Gas Company surged over 14 per cent today after its received board of directors approval for a proposed merger with other state run firms involved in city gas distribution business.
In a regulatory filing, Gujarat Gas Company said that the Board of Directors of the company at its meeting held on February 24, have granted in-principle approval to the proposed consolidation by way of amalgamation of the company with other companies involved in City Gas Distribution business.
Reacting to the news which was announced after market trading hours yesterday, the shares of the company surged 14.04 per cent to its intra-day high of Rs 253.35 on the BSE.
Similar movement was witnessed on the National Stock Exchange, where the stock surged 13.13 per cent to its intra-day high of Rs 252.85.
The filing further noted that GSPC Distribution Networks Limited (GDNL), GSPC Gas Limited (GSPC Gas), Gujarat Gas Financial Services Limited (GFSL) and Gujarat Gas Trading Company Limited (GTCL) would be merged with Gujarat Gas Company Ltd.
According to market analysts, the proposed merger with city gas distributors would boost Gujarat Gas' valuations in line with those of state-run Indraprastha Gas Ltd.