GAIL to buyback equity shares worth Rs1,083 crore; stock jumps ~1.5%

31 Mar 2022 , 01:19 PM

GAIL (India) Limited today approved a buyback of about 5.70 crore shares at Rs190 per share aggregating about Rs1,083 crore (excluding taxes). The buyback price of equity shares is at a 24% premium on the previous day’s close price at NSE.

The decision was taken by the Company’s Board of Directors at its meeting held today to consider the buyback of the fully paid-up equity shares of the Company. The Board approved the buyback of about 5.70 crore shares through a tender offer representing 2.50% of its paid-up capital and free reserves as of March 31, 2021.

“GAIL has been consistently rewarding its shareholders through regular dividends, issue of bonus shares, and also buyback of shares at a premium,” stated the company in its press release.

During the current fiscal year, the company has paid the highest-ever interim dividend amounting to Rs3,996 crore.

Earlier in March 2021, GAIL has also completed a buyback of securities worth Rs1,406 crore consisting of about 6.97 crore shares at Rs150 per share.

GAIL is a leading player in gas marketing in India which sells about 52% of natural gas and 44% LNG sold in India. The Company supplies 67% of gas consumed in the Fertilizer sector, 53% in Power, and 60% in CGD, in India. GAIL is in a confident position to cater to the needs of the customers and actively contribute towards the national goal of a ‘gas-based’ economy.

GAIL is currently trading at Rs155.20 up by Rs1.8 or 1.17% from its previous closing of Rs153.40 on the BSE. It has touched intraday high and low of Rs157.25 and Rs152.90 respectively.