RATING RATIONALE
30Mar2023

Gujarat State Petroleum Corporation Ltd.

Brickwork Ratings reaffirms and withdraws the ratings for the Bank Loan Facilities of Rs. 10861.20 Crs. of Gujarat State Petroleum Corporation Ltd.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(31 Oct 2022)
Present
Fund Based 5300.00 3661.20 Long Term BWR AA-/Stable
Reaffirmation
BWR AA - /Stable
Reaffirmation/Withdrawal
Non Fund Based 7200.00 7200.00 Short Term BWR A1+
Reaffirmation
BWR A1 +
Reaffirmation/Withdrawal
Grand Total 12500.00 10861.20 (Rupees Ten Thousand Eight Hundred Sixty One Crores and Twenty lakhs Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure

RATING ACTION / OUTLOOK

Brickwork Ratings (BWR) has reaffirmed and simultaneously withdrawn the bank loan ratings of Rs. 10,861.20 Crs. based on the request of Gujarat State Petroleum Corporation Ltd. (GSPC or the company) for rating withdrawal and No Objection Certificate / No Dues Certificate from the lenders.

The ratings continue to be supported by the strong parentage of the company [being majorly held by Government of Gujarat (GoG)] and its strategic importance for GoG, established market position in the gas trading business, the company's presence in the entire gas value chain through subsidiaries, associates and joint ventures and satisfactory financial performance in 9MFY23 (provisional).

Hence, in accordance with extant regulatory guidelines and BWR Rating Withdrawal Policy, ratings for the bank loan facilities of Rs. 10,861.20 Crs. of GSPCL are reaffirmed and simultaneously withdrawn.

ABOUT THE ENTITY

GSPC trades in gas and is also engaged in exploration and production of oil and natural gas. It is the second largest gas trading company in India and the largest natural gas supplier in Gujarat. GoG holds 94% stake, directly and indirectly. The company supplies gas to customers in a number of industries such as power generation, fertilizers, and, City Gas distribution, etc. GSPC also supplies gas to its group companies/subsidiaries/associates engaged in these businesses. The company has a mix of long - term and short - term sourcing arrangements with domestic and international players. 

GSPC Group Presence across value chain

Exploration and Production: GSPC holds participating interest in 14 blocks in offshore and onshore.

Gas Marketing:  It has gas marketing portfolio of ~15 MMSCMD across Gujarat, expanding business beyond Gujarat too

Gas Transmission: Developed transmission network across Gujarat (~2,715 kms), developing two major cross-country pipelines (~1,321 kms) as well as connecting additional locations in Gujarat.

City Gas Distribution: Gujarat Gas and Sabarmati Gas operate CGD GAs in Gujarat. Six new geographical areas (GA's) have been won and roll-out strategies being developed.

Power Generation:  1,200+ MW of gas -based conventional power generation capacity and the renewable capacity in excess of 125 MW.

(as per the information shared during the Oct'22 rating review)

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

Nil

ANY OTHER INFORMATION

Nil

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2023) 2022 2021 2020
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 3661.20
BWR AA-/Stable
(Reaffirmation/Withdrawal)
31Oct2022
BWR AA-Stable
(Reaffirmation)
16Mar2021
BWR AA- Stable
(Reaffirmation)
06Aug2020
BWR AA- Stable
(Assignment)
0.00
NA
NA
NA
06Dec2021
BWR AA- Stable
(Reaffirmation)
NA
NA
Non Fund Based ST 7200.00
BWR A1+
(Reaffirmation/Withdrawal)
31Oct2022
BWR A1+
(Reaffirmation)
16Mar2021
BWR A1+
(Reaffirmation)
06Aug2020
BWR A1+
(Assignment)
0.00
NA
NA
NA
06Dec2021
BWR A1+
(Reaffirmation)
NA
NA
Grand Total 10861.20 (Rupees Ten Thousand Eight Hundred Sixty One Crores and Twenty lakhs Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

Swarn Saurabh

Assistant Manager - Ratings swarn.s@brickworkratings.com

Vidya Shankar

Principal Director - Ratings Board : +91 80 4040 9940 vidyashankar@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Gujarat State Petroleum Corporation Ltd.
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 Axis Bank Ltd. Standby LC/ILC/FLC/BGSanctioned _ 1000.00 1000.00
2 Bank of Baroda Standby LC/ILC/FLC/BGSanctioned _ 1500.00 1500.00
3 Bank of Baroda Cash CreditSanctioned 300.00 _ 300.00
4 Canara Bank Term LoanSanctioned _ _ 0.00
5 HDFC Bank Term LoanSanctioned _ _ 0.00
6 HDFC Bank Standby LC/ILC/FLC/BGSanctioned _ 400.00 400.00
7 IDBI Bank Standby LC/ILC/FLC/BGSanctioned _ 600.00 600.00
8 Kotak Mahindra Bank Working Capital Demand LoanSanctioned 250.00 _ 250.00
9 Kotak Mahindra Bank Standby LC/ILC/FLC/BGSanctioned _ 250.00 250.00
10 Punjab National Bank Cash CreditSanctioned 150.00 _ 150.00
11 State Bank Of India (SBI) Term LoanOut-standing 2000.00 _ 2000.00
12 State Bank Of India (SBI) Cash CreditSanctioned 300.00 _ 300.00
13 State Bank Of India (SBI) Standby LC/ILC/FLC/BGSanctioned _ 2000.00 2000.00
14 Un tied portion Standby LC/ILC/FLC/BGProposed _ 1450.00 1450.00
15 Un tied portion Cash CreditProposed 461.20 _ 461.20
16 Union Bank of India Cash CreditSanctioned 200.00 _ 200.00
Total 3661.20 7200.00 10861.20
TOTAL (Rupees Ten Thousand Eight Hundred Sixty One Crores and Twenty lakhs Only)
ANNEXURE-III
List of entities consolidated

Name of Entity% OwnershipExtent of consolidationRationale for consolidation
Gujarat State Petronet Limited 37.63 Proportionate Subsidiary (By Management Control)
Gujarat Gas Limited 20.38 Proportionate Subsidiary
Guj Info Petro Limited 60.24 Proportionate Subsidiary
GSPC Pipavav Power Company Limited 97.47 Proportionate Subsidiary
GSPC (JPDA) Limited 100 Full Consolidation Subsidiary
GSPC Energy Limited 100 Full Consolidation Subsidiary
GSPC Offshore Limited 100 Full Consolidation Subsidiary
GSPL India Gasnet Limited 19.57 Equity Method Joint Venture
GSPL India Transco Limited 19.57 Equity Method Joint Venture
Sabarmati Gas Ltd 32.87 Equity Method Joint Venture
Gujarat State Energy Generation Limited 54.17 Equity Method Associate
Alcock Ashdown (Gujarat) Limited 22.5 Equity Method Associate
Social Welfare Trust 100 Full Consolidation Subsidiary
Gujarat Gas Limited Employee welfare stock option trust 20.38 Proportionate Subsidiary

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