Gujarat State Petronet Limited · NSE:GSPL
Gujarat State Petronet — Merger or Acquisition (August 2024)
25 slides from Gujarat State Petronet's merger presentation, Aug 30, 2024
Slide 1: Regulation 30 intimation letter to stock exchanges
GSPL Bhavan, E-18, GIDC Electronics, Nr. K-7 Circle, Sector-26, Gandhinagar-382028 Gujarat (INDIA) Tel: +91-79-23268500/600 Website :www.gspcgroup.com Ref: GSPL/S&L/2024-25 Date: 30th August, 2024 To To The Manager (Listing) The Manager (Listing) The BSE Ltd. The National Stock Exchange of India Phi
Slide 2: Gujarat Gas Limited & Gujarat State Petronet Limited Investor Update
Gujarat Gas Limited & Gujarat State Petronet Limited INVESTOR UPDATE On ‘The Scheme of Arrangement’ 30 August 2024
Slide 3: Cautionary Statement
Cautionary Statement This presentation contains 'forward-looking statements' – that is, statements related to future, not past, events. In this context, forward- looking statements often address our expected future business and financial performance, and often contain words such as 'expects,' 'antic
Slide 4: Contents
Contents 01 Setting the Context Proposed Scheme and Transaction 02 Highlights Key Considerations for GGL & GSPL’s 03 Stakeholders 04 Roadmap March 2023 3
Slide 5: Setting the Context
01 Setting the Context March 2023 4
Slide 6: Key Entities involved in the Scheme of Arrangement
Key Entities involved in the Scheme of Arrangement 37.63% 54.17% Shareholding of GSPC in GSPL Shareholding of GSPL in GGL Gujarat State Petroleum Gujarat State Petronet Limited Gujarat Gas Limited Corporation Limited GSPC GSPL GGL India’s 2nd largest Natural Gas India’s 2nd largest Natural Gas India
Slide 7: GSPC's Business Presence
GSPC’s Business Presence EBIDTA (₹ crore) PAT (₹ crore) & Total Revenue (₹ crore) GSPC’s value derived from Gas Trading Business EBITDA Margin (%) PAT Margin (%) ➢ India’s second largest Natural Gas Trading Company 4,000 20% 3,500 12% 27,873 12% 11% Largest demand aggregator in Gujarat 18% 3,500 24,
Slide 8: GSPL's Business Presence
GSPL’s Business Presence EBIDTA (₹ crore) PAT (₹ crore) & GSPL’s value derived from Gas Transmission Total Revenue (₹ crore) EBITDA Margin (%) PAT Margin (%) Business ➢ India’s second largest Natural Gas Transmission 2,428 2,367 54% 2,200 80% 2,149 2,125 78% 1,400 60% Company with 2,706 km pipeline
Slide 9: GGL's Business Presence
GGL’s Business Presence EBIDTA (₹ crore) PAT (₹ crore) & Total Revenue (₹ crore) GGL’s value derived from CGD Business EBITDA Margin (%) PAT Margin (%) 4,000 25% ➢ India’s largest City Gas Distribution (CGD) Company 16,878 17,407 16,401 3,500 2,000 One of the earliest entrants in CGD space in India
Slide 10: Strategic Factors: Leading to the Scheme of Arrangement
Strategic Factors: Leading to the Scheme of Arrangement Key Factors Influencing the scheme of arrangement Gujarat Gas Limited Gujarat State Petronet Limited (GGL) (GSPL) ➢ Decade of robust industry-driven growth and rapid business segment expansion for GSPC’s Market Capitalization# Gas Trading Busin
Slide 11: Leverage Position across Group Companies
Leverage Position across Group Companies Total Debt (₹ crore) Credit Rating Financial Comments CARE AA; ➢ Comfortable Leverage position with (Stable) / Nil debt since the past two years Significant synergy ➢ Prudent working capital management CARE A1+ to unleash post the merger with GGL 4,405 Nil Ni
Slide 12: Proposed Scheme and Transaction Highlights
02 Proposed Scheme and Transaction Highlights March 2023 11
Slide 13: Existing Shareholding Structure
Existing Shareholding Structure Government of Gujarat (GOG) Institutional / Public shareholders / Bodies Corporate (Promoter) 55.65% GSPC 44.35% (Promoter of GSPL) 37.63% 62.37% GSPL (Promoter of GGL) 54.17% 6.53% 39.30% GGL 12
Slide 14: Proposed Scheme of Arrangement
Proposed Scheme of Arrangement Scheme of Arrangement Objectives of the Scheme of Arrangement Board of Directors of all respective companies have approved ‘The Scheme of Arrangement’ in the Board meetings held on 30th August 2024 ➢ Simplification of the layered structure Transaction Issuance of ➢ Enh
Slide 15: Resultant Shareholding Structure
Resultant Shareholding Structure Promoter Public shareholders Promoter Public shareholders 25.86% 74.14% 25.86% 74.14% GGL GTL Gas Trading, E&P, Related Investments in City Gas Related Renewables Gas Transmission Gas Transmission Distribution Investments Business Entities 14
Slide 16: Key Aspects of the Transaction
Key Aspects of the Transaction Valuation Share Swap / Entitlement Ratio Recommended share exchange ratio Joint valuation by registered valuers ❑ On merger of GSPC into GGL: ❑ Ernst & Young Merchant Banking Services LLP ❑ 10 shares of GGL for every 305 shares held in GSPC. ❑ SSPA & Co Chartered Accou
Slide 17: Milestones and Approvals
Milestones and Approvals Indicative Approvals required from Dec’ 2024 Jan’ - Mar' 2025 Apr' – May 2025 Jun' 2025 Jul' - Aug' 2025 SEBI & Stock Exchanges Shareholder Approvals (Majority of minority) Regulatory authorities (RoC, Regional Director, Income Tax & others) MCA Issuance of shares pursuant t
Slide 18: Key Considerations for Stakeholders of GGL and GSPL
03 Key Considerations for Stakeholders of GGL and GSPL March 2023 17
Slide 19: Key Considerations for GGL & GSPL's Stakeholders
Key Considerations for GGL & GSPL’s Stakeholders ➢ Expected improvement in margins and return ratios of GGL on account of consolidation of gas Gujarat Gas Limited trading business of GSPC with distribution business of GGL. ➢ Strong cash flows to result in better dividend paying capacity of GGL GGL ➢
Slide 20: Roadmap
04 Roadmap March 2023 19
Slide 21: Future Priorities and Growth Areas: GGL
Future Priorities and Growth Areas GUJARAT GAS LIMITED (GGL) STRATEGIC PRIORITIES Enhanced Scale of Operational Efficiency Operations Better leverage combined assets & expanded Integration of Gas sourcing, leading to cost capital base all put together. One of India’s largest reductions and assured a
Slide 22: Future Priorities and Growth Areas: GSPL / GTL
Future Priorities and Growth Areas GUJARAT STATE PETRONET LIMITED (GSPL) / GSPL TRANSMISSION LIMITED (GTL) STRATEGIC PRIORITIES Enhance Operational Expansion of Gas Grid Independently listed entity Excellence Focus on the geographical expansion and the Transition to independently listed entity 'GTL'
Slide 23: Investor & Analyst Call to discuss the Scheme of Arrangement
Investor & Analyst Call to discuss the Scheme of Arrangement Dial-in Details for Investor & Analyst Call Event Location & Time Telephone Number India – 15:00hrs, IST +91 22 6280 1107 USA – 5:30 AM (Eastern Time – New York) +91 22 7115 8008 (Primary Number) Conference Call on 31st August 2024, Saturd
Slide 24: Thank You
Thank You Gujarat Gas Limited Ernst & Young LLP Diwakar Pingle, Partner, Sandeep Dave, CS Investor Relations Rajesh Sivadasan, CFO corpcom@gujaratgas.com diwakar.pingle@in.ey.com 23
Slide 25: Abbreviations
Abbreviations Abbreviation Explanation GSPC Gujarat State Petroleum Corporation Limited GSPL Gujarat State Petronet Limited GIGL GSPL India Gasnet Limited GITL GSPL India Transco Limited GEL GSPC Energy Limited GGL Gujarat Gas Limited GTL GSPL Transmission Limited GOG Government of Gujarat ROC Regis
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