very interesting researching which was announced over the weekend within Gujarat gas Gujarat gspl as well as gspc now essentially the scheme of arrangement has been largely been proposed uh for uh simplifying the the the structure as well as value loocking for the shareholders as well so when I mean simplifying the structure let's look at the structure first what is Gujarat gas currently I mean they what not done approved is merger of gspc into Gujarat gas gspl into Gujarat gas as well as dor of GTL now if you look at the existing structure of of of the holding Gujarat government holds a majority stake in gspc which is unlisted and and you know then okay now first talk about the share share sh ratio for for Gujarat so basically a merger between gspc and Gujarat gas the ratio is 10 10 shares of Gujarat gas for 305 shares of gspc for GS which is a listed entity you'll get 10 shares of Gujarat gas if you're earning 13 shares of gspl and after the merger there will be a Dem merger of the trading business which will be called GTL and you'll get one share of GTL for three shares of Gujarat gas so that's the structure it's a three-step structure which has been announced now as I said you know it's largely been done to dismantle the holding structure what is the structure currently Gujarat government owns 55.6% gspc Which is unlisted now gspc intern owns 37 half% in gspl which is a listed entity and gspl intern owns close to 54% in Gujarat gas that's the holding structure currently after the restructuring there will be two two separate companies which will get listed one will be Gujarat gas now that will hold uh the the City Gas Distribution businesses the gas trading EMP and the renewal business and the related investment so this will be one entity where all the companies will get merged into the second entity will be GTL now that's the trading business of G of GSL which will be cowed out as a separate business and list separately now GTL will have the gas transmission business and the related Investments uh including the cash as well so that's what the restructuring will look like uh two businesses Gujarat gas as well as GTS now what our brokerage is saying as far as Gujarat gas is concerned couple of interesting reports Equus should has actually upgraded the stock to an ad and an has a Target price of 726 they believe that the merger is value equative even equarius had put out a note on Gujarat gas they actually upgrad the stock to an ad with the taret was 667 and they believe it's a well thought merger and post the merger Gujarat gas will become the second most you know second big company in the in the gas Shing space so that's broadly uh what what the analysts are saying in fact J was slightly negative on the stock but uh post the merger they believe that the fair value could be close to 3513 or but they still believe that earnings could be volatile and there could be some impact on the gas margins POS this merger so mixed you from analyst point of view but the stocks are reacting pretty hard I guess the two big takeaways one it it just simplifies the holding structure within the Gujarat gas and gspc and gspl and two a bit of un value unlocking for the gsv shareholders [Music]