In furtherance to our letter dated 5th December, 2025 regarding Credit Rating on Bank Facilities, please find enclosed herewith the Press Release received from CARE Ratings Limited on Credit ....
Awaiting price reaction for this filing.
CARE Ratings (CareEdge) has placed Gujarat State Petronet's (GSPL) long-term credit rating of CARE AA+ on 'Rating Watch with Developing Implications', changing the outlook from 'Stable'. The short-term rating of CARE A1+ has been reaffirmed. The watch follows the proposed scheme to amalgamate GSPL into Gujarat Gas Limited (GGL, rated CARE AAA/Stable/CARE A1+) and subsequently demerge the gas transmission business into a new listed entity (GTL), along with two JVs (GITL and GIGL). The scheme, approved by shareholders in August 2024, is expected to be completed by January 2026. Rated bank facility size has been reduced to Rs 300 crore (from Rs 800 crore earlier). GSPL remains debt-free with cash and bank balance of Rs 1,997 crore as of March 2025, though FY25 revenue dropped 45% to Rs 1,111 crore due to a PNGRB-led tariff cut from Rs 34/MMBTU to Rs 18.10/MMBTU.
Shareholders may see short-term uncertainty as CARE awaits clarity on the merger impact, but the company's zero-debt status and strong Rs 1,997 crore cash balance provide a safety cushion. Post-merger, existing GSPL shareholders will receive shares in GGL and subsequently in the new transmission entity GTL.