GSPL informs the exchange about the investments in its Joint Venture Company, GIGL.
Awaiting price reaction for this filing.
GSPL's board has approved fresh capital infusion into its subsidiary GIGL, which runs the Mehsana-Bhatinda-Gurdaspur natural gas pipeline project. The investment includes Rs. 35.77 crore in 7% redeemable cumulative preference shares (5-year tenure) and Rs. 7.80 crore in additional equity, taking total cumulative equity commitment to Rs. 1,339.84 crore. GSPL will also give Rs. 18 crore as an interim interest-bearing loan at 7% until preference shares are issued. GIGL has already completed about 1,440 km of the planned 1,560 km pipeline, with FY25 turnover of Rs. 239.67 crore. GSPL's stake stays at 52%, with IOCL (26%), BPCL (11%) and HPCL (11%) as the other partners. There is no change in shareholding or control, and the transaction is at arm's length.
This is a routine incremental capital top-up into an existing subsidiary, not a new acquisition or stake change, so it should not materially affect GSPL's shareholding or trigger any open offer. With GIGL's pipeline nearly complete, it supports future gas volume growth for GSPL beyond Gujarat, making it mildly positive for long-term earnings.