GSPL stock: Gujarat Gas stake buy if funded via debt to impact bottom line

Analysts say that GSPC can look at selling its other businesses

Gujarat State Petronet’s (GSPL) decision to acquire a 28.4 per cent stake in Gujarat Gas and thereby, becoming a majority shareholder in the company did not go down well with the Street. Reacting to the news, the stock shed 6.25 per cent on Tuesday.

GSPL, which has a 25.8 per cent stake in Gujarat Gas, will acquire another 28.4 per cent stake from its parent Gujarat State Petroleum Corporation (GSPC). The transaction is likely to be smooth as no regulatory approval will be required. While the value of the deal is still not known, analysts feel the transaction is likely to