Gujarat Energy Ltd Issues Shareholder Guidance on Cost Apportionment

Gujarat Energy Limited (formerly Gujarat Gas Limited) has issued a general guidance note to its shareholders regarding the apportionment of the cost of acquisition for equity shares of the company and the resulting company, GSPL Transmission Limited (GTL). This follows a composite scheme of amalgamation and arrangement sanctioned by the Ministry of Corporate Affairs. The scheme involved the demerger of GEL's gas transmission business into GTL, with GTL issuing new shares to GEL shareholders. The guidance details how shareholders should calculate the proportionate cost of acquisition for their original GEL shares and the new GTL shares for capital gains tax purposes, as per the Income-Tax Act.