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New Delhi: The Board of Directors of Gujarat Gas Ltd has approved the equity investment of Rs 100 cr in GSPC LNG Ltd, the company told its shareholders on Wednesday. “… we inform you that the Board of Directors of Gujarat Gas Limited in its meeting held today i.e. 2nd August, 2023 approved Equity Investment of Rs 100 Crores (10 Crore Equity Shares ofRs 10/- each) in equity shares of GSPC LNG Limited,” Gujarat Gas told the bourses in a regulatory filing.
“The acquisition would fall within the ambit of Related Party Transactions under applicable provisions of SEBI (LODR) 2015. GSPC LNG Limited is a Government Related Entity of Gujarat Gas Limited as per Indian Accounting Standard (IndAS) 24 (Related Party Disclosures),” it added.
Gujarat Gas said that the acquisition will help it create better synergy and integration in the gas value chain. The government of Gujarat holds majority 43.50 percent share, Gujarat State Petroleum Corporation (GSPC), which is also a promoter of Gujarat Gas, holds 1.07 percent share and Gujarat State Petronet Ltd (GSPL) holds 2.34 percent share in GSPC LNG Ltd. After the investment of Rs 100 crore, the share of Gujarat Gas in GSPC LNG will become 7.87 percent, said the company.
GSPC LNG is engaged in the business of LNG receiving, storage and regasification. The company currently operates on a tolling model and offers its regasification services to prospective users for a fee. In addition to this the Company also offers LNG tanker truck loading services to users which supports the development of small-scale LNG business to customers who are not connected to pipeline networks. The LNG terminal of GLL is also equipped to undertake reloading of LNG ships. Storage and reloading of LNG can be developed as an alternate line of business in the future.
The company’s revenue from operations stood at Rs 147.54 crore in FY 2021-22 and at Rs 232.07 crore in FY 2022-23.
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