GAIL Forms Finance Entity at GIFT City for Treasury and Ship Leasing Operations

8 Apr 2025 , 08:08 PM

GAIL (India) Limited, a public sector natural gas company, has launched a wholly owned subsdiary GAIL Global IFSC Limited. The entity will be a wholly owned subsidiary of GIFT City based at IFSC. GAIL Global IFSC Limited was incorporated on April 07, 2025.

The new subsidiary has been created with an authorised share capital of ₹17 crore and a paid-up capital of ₹8.5 crore. GAIL holds 100% ownership in the company by subscribing to shares issued at a face value of ₹10 each, making it a fully owned arm of the parent company.

This subsidiary was incorporated after approval from the Ministry of Petroleum and Natural Gas as well as clearance from the Department of Investment and Public Asset Management (DIPAM) on March 13, 2025.

GAIL Global IFSC Limited will operate as a financial services company in IFSC and is also expected to manage global and regional corporate treasury centre operations. GAIL will also enter into ship leasing business through the subsidiary, which is a shift in strategy for the firm from its energy and gas infrastructure business.

Aiming to strengthen its foothold in the global financial services sector and to optimise treasury functions in a tax-efficient environment, GAIL will be part of GIFT City’s financial ecosystem. The move into ship leasing and treasury operations is expected to generate new revenue streams while also serving its energy logistics business, the company has said.

On the financial side, GAIL announced a robust quarter-on-quarter increase of 44.7% in its net profit for FY25-Q3, with ₹3,867.4 crore profit. During the corresponding quarter ended September of the previous fiscal, GAIL had posted a net profit of ₹2,672 crore, indicating a strong year-on-year growth.

Total revenue in the third quarter was ₹34,937 crore, a 6.2% growth over ₹32,912 crore in the previous quarter. Though the revenue and net profit figures were strong, the company’s operational performance weakened as EBITDA fell 24.2% q-o-q to ₹2,837.8 crore from ₹3,745 crore in the previous quarter. GAIL Global IFSC Limited will be a shaping step taken by GAIL towards portfolio diversification, optimisation of cost of funds as well as global expansion via GIFT City.