GAIL to Invest ₹10,675 Crore in Talcher Fertilizers via Rights Issue

30 Jun 2025 , 10:34 AM

GAIL (India) Ltd has committed to investing ₹10,675 crore in Talcher Fertilizers Ltd, a joint venture it co-promotes, by subscribing to 106.75 crore equity shares at ₹10 each. The funding will take place through a rights issue, with the transaction expected to be completed on or before July 9, 2025.

Talcher Fertilizers was established in 2015 with the aim of reviving the Talcher fertiliser unit in Odisha, using coal gasification technology, a project that has been long in the pipeline.

The joint venture brings together GAIL, Coal India Ltd, Rashtriya Chemicals & Fertilizers Ltd, and Fertilizer Corporation of India Ltd, with the first three entities holding an equal 33.333% stake each. FCIL holds a nominal stake of 0.0002%, and the rights issue has been offered in equal proportion to existing shareholders.

GAIL clarified that this capital infusion does not fall under related party transactions, as the shareholding is equally distributed and the deal follows standard regulatory norms.

On the financial side, GAIL reported quarterly revenue of ₹35,685 crore, reflecting a modest 2.1% growth year-on-year. The company’s net profit for the quarter nearly halved to ₹2,049 crore. On the operating front, EBITDA rose 13.3% year-on-year to ₹3,215 crore. Margins showed improvement, climbing to 9% in the March quarter from 8.1% in December.

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