GAIL announces share buyback worth Rs1,083 crore
Premium- The buyback price of equity share is at 24% premium of the closing level at the National Stock Exchange on Wednesday
NEW DELHI : State-run GAIL (India) Ltd has approved a buyback of about 5.70 crore shares at ₹190 per share aggregating to about ₹1,083 crore.
A company statement said that the buyback price of equity share is at 24% premium of the closing level at the National Stock Exchange on Wednesday.
"The decision was taken by the company’s board of directors at its meeting here today to consider buyback of the fully paid up equity shares of the company. The board approved buyback of about 5.70 crore shares through tender offer represents 2.50% of its paid- up capital and free reserves as on March 31, 2021," it said.
The company has fixed Friday, April 22, 2022 as the record date for the purpose of ascertaining the eligibility of shareholders for buyback of equity shares.
In March last year, the company completed buyback of its equity shares at 2.5% of net worth amounting to about ₹1,046 crore which included about 6.97 crore shares at ₹150 per share.
Noting that GAIL has been consistently rewarding its shareholders through regular dividends, issue of bonus shares and also buyback of shares at premium, the company said that during current financial year, the company has paid the highest ever interim dividend amounting to ₹3,996 crore, at the rate of 90% of the face value.
GAIL 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 kilometre of natural gas pipeline, which is 74% of total length of cross-country natural gas pipeline network in 28 states and union territories. Its supplies account for 52% of natural gas and 44% of LNG sold in India.
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It supplies 67% of gas consumed in fertilizer sector, 53% in ower and 60% 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, according to the company.
The company has also embarked upon alternate energies like green hydrogen, renewables and bio-fuels projects.
On Thursday, shares of the company on the BSE closed at ₹155.70, higher by 1.50% from its previous close.
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