New Delhi: Manoj Jain, the Chairman and Managing Director (CMD) of GAIL (India) Ltd, has said that the company's cash position is in good shape for it to undertake a share buyback. In an interview on Tuesday, Jain said, "Our cash position is good because our debt equity ratio is very comfortable. So, we are in a position to undertake the buyback. The Board of Directors is slated to consider the proposal on January 15. Further details cannot be divulged at this point."
In a regulatory filing to the stock exchanges on January 11, GAIL had said that its Board of Directors will meet on January 15 to consider "Buyback of the fully paid-up Equity shares of the Company of face value of Rs.10/ each." It will also approve the "Declaration of Interim Dividend on the Equity Shares of the Company for the Financial year 2020-21," said the document.
The government is believed to have reached out to Coal India Ltd (CIL), MOIL and a bunch of other PSUs for share buybacks this fiscal year. NTPC, NMDC Ltd, Engineers India Ltd (EIL), KIOCL have already announced a share buyback. The government is the largest shareholder in all these companies and is looking to sell off its equity for cash in return. The Department of Investment and Public Asset Management (DIPAM) has managed to raise just Rs 13,844.49 crore out of its FY21 target of Rs 2.1 lakh crore so far and is therefore, looking to raise as much as it can before the end of the financial year. DIPAM Secretary Tuhin Kanta Pandey had said in an interview that the Centre is encouraging PSUs to announce share buybacks if they have extra cash available after meeting their capex requirements.
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