GAIL Share Price Up Over 4%; Approves Scheme of Merger of Konkan LNG with Company

GAIL (India) Ltd has approved the merger of its wholly owned subsidiary, Konkan LNG Ltd (KLL), with the company. The decision was taken at the Board meeting held on July 31, 2026, and disclosed on the same day.  

The company noted that the proposal will be carried out under Section 233 of the Companies Act, which covers mergers involving wholly owned subsidiaries.  

Konkan LNG to Cease as a Separate Company 

Konkan LNG is fully owned by GAIL and operates the LNG regasification terminal at Dabhol in Ratnagiri, Maharashtra. After the merger becomes effective, the subsidiary will be dissolved without going through the winding-up process.  

Since GAIL already owns all of Konkan LNG's equity shares, those shares will be cancelled, and no fresh shares will be issued.  

No Cash or Share Swap Involved 

The company also noted that the transaction does not involve any cash payment or share exchange ratio. It also clarified that the merger will not lead to any change in GAIL's shareholding pattern.  

As Konkan LNG is a wholly owned subsidiary, the transaction falls within the category of related-party transactions.  

Businesses to Come Under One Structure 

GAIL is engaged in the transportation and marketing of natural gas, besides petrochemicals and liquid hydrocarbons. Konkan LNG manages the Dabhol LNG regasification terminal.  

According to the company, bringing both businesses under one legal entity is intended to simplify the group structure and support operational efficiency.  

Turnover of the Two Companies 

For FY2025-26, GAIL reported a turnover of ₹1,41,483 crore, while Konkan LNG recorded a turnover of ₹741 crore. The Board approved the scheme during its meeting held between 12:00 noon and 1:55 pm on July 31, 2026.  

The proposal will now move forward through the applicable statutory process before taking effect.  

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GAIL (India) Ltd Share Price Performance 

As of July 31, 2026, at 3:02 pm, GAIL (India) Ltd share price was trading at ₹181.00, up 4.24% from the previous closing price. 

Conclusion 

With the Board's approval, GAIL has initiated the process of merging its wholly owned subsidiary, Konkan LNG, into the parent company. The transaction is subject to the applicable legal process before becoming effective. 

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