Friday, May 13, 2022

GAIL to buyback about 5.70 crore shares at Rs 190 per share

Must read

New Delhi: GAIL (India) Limited on Thursday approved the buyback of about 5.70 crore shares at Rs 190 per share aggregating to about Rs 1,083 crores (excluding taxes). The buyback price of equity shares is at 24 percent premium on the previous day's close price at NSE.

The decision was taken by the company’s Board of Directors at its meeting here on Thursday 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 tender offer represents 2.50 percent of its paid-up capital and free reserves as on March 31, 2021.

GAIL has been consistently rewarding its shareholders through regular dividends, issue of bonus shares and also buyback of shares at premium. During the current financial year, the company has paid the highest ever interim dividend amounting to Rs 3,996 crore (at the rate of 90 percent of the face value). The company had issued bonus shares in FY 2008-09, 2016-17, 2017-18 and 2019-20.  Further, the Company has also completed buyback of its equity shares in March 2021 at 2.5 percent of net-worth amounting to about Rs 1,046 crore i.e, about 6.97 crore shares at Rs 150 per share.

GAIL’s started its business in 1984 as Natural Gas Transmission Company with a single cross-country trunk pipeline, which has now become the flagship natural gas company of India. It is the largest integrated natural gas marketing and transmission company having its presence along entire natural gas value chain comprising gas transmission and marketing, LPG Transmission, gas processing, petrochemicals, LNG imports, Exploration & Production and City Gas Distribution. GAIL owns and operates around 13,840 km which is 74 percent of a total length of the cross-country natural gas pipeline network in 28 states and Union Territories. GAIL is leading gas marketing Company in India which sells around 52 percent of natural gas and 44 percent of LNG sold in India.

The company supplies 67 percent of gas consumed in the fertilizer sector, 53 percent in Power and 60 percent in CGD, in India. With its LNG portfolio of over 14 MTPA and diversity in supply sources and price indices, GAIL is well poised to cater to the needs of the customers and actively contribute towards the national goal of a ‘gas-based’ economy. The company has also embarked upon alternate energies like green hydrogen, renewables and bio-fuels projects which are of national importance and would likely provide a transition to the future.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)

- Advertisement -

More articles

- Advertisement -

Latest News