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Gujarat Gas shares may re-rate as per Nomura, who highlights benefits from three-way mergerAccumulated tax losses of ₹7,200 crore on GSPC books which can be used by the merged entity to offset future tax liabilities, according to brokerage firm Nomura.By Shloka Badkar  April 20, 2026, 12:10:35 PM IST (Published)2 Min ReadBrokerage firm Nomura expects shares of Gujarat Gas Ltd (GGL). to re-rate, after the company received approval from the Ministry of Corporate Affairs (MCA) for its proposed merger with GSPC and GSPL.

Nomura maintained its "buy" recommendation on the stock with a price target of ₹390, implying an upside potential of 7.5% from current levels.

The brokerage said that there are several positives to take note of from this upcoming merger and those would be a re-rating trigger for the stock.

Gujarat Gas' scheme of amalgamation and subsequent demerger of the transmission business makes good strategic sense along with some immediate gains for the merged entity, according to Nomura, who highlighted some key benefits.

Simpler group structure as it eliminates cross holdings.

Integrated gas value chain creates scale and efficiency.

Valuation discount due to conglomerate structure and cross holding goes away.

Earnings for CGD entity may increase due to reduction in marketing margins currently being accrued to GSPC.

Accumulated tax losses of ₹7,200 crore on GSPC books which can be used by the merged entity to offset future tax liabilities, Nomura added.

Overall, the brokerage believes the merger is EPS-accretive on an immediate basis.

Of the 31 analysts who have coverage on the stock, 14 have a "buy" rating, nine have a "hold" rating and eight have a "sell" rating.

Shares of Gujarat Gas are trading 0.4% higher on Monday at ₹364.25. The stock has risen 8.5% in the past month but has declined 57.7% this year, so far.

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