State-run GAIL (India) Ltd has approved the merger of its wholly owned subsidiary, Konkan LNG Ltd (KLL), with itself, a move aimed at creating a stronger vertically integrated natural gas business while simplifying the group’s corporate structure.
The merger was approved by GAIL’s Board of Directors at its meeting held on July 31. The company said the amalgamation will enhance operational efficiencies by integrating the operations of Konkan LNG with GAIL’s core natural gas business.
Creating a stronger integrated entity
According to GAIL, the merger is intended to create a larger and stronger vertically integrated entity by streamlining the group structure and improving operational synergies.
Konkan LNG owns and operates the LNG regasification terminal at Dabhol in Ratnagiri, Maharashtra, while GAIL is engaged in the marketing and transportation of natural gas, petrochemicals and liquid hydrocarbons. The integration is expected to strengthen GAIL’s presence across the natural gas value chain.
Financial profile
For FY26, GAIL reported a turnover of ₹1,41,483 crore, while Konkan LNG posted a turnover of ₹741 crore, highlighting the relative scale of the two companies.
No impact on shareholders
As Konkan LNG is a wholly owned subsidiary of GAIL, the merger will not involve any share exchange ratio or cash consideration.
Upon the scheme becoming effective under Section 233 of the Companies Act, Konkan LNG will be dissolved without being wound up, and all its equity shares will stand cancelled. GAIL also clarified that there will be no change in its shareholding pattern following the merger.
The company disclosed the development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.