Home Business GAIL traces up Rs 1,083 crore share buyback at 24% premium

GAIL traces up Rs 1,083 crore share buyback at 24% premium

GAIL traces up Rs 1,083 crore share buyback at 24% premium

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NEW DELHI: State-run fuel utility GAIL Ltd on Thursday introduced a Rs 1,083 crore share buyback plan for five.7 crore scrips at Rs 190 every, marking a premium of roughly 24% on Wednesday closing value on the NSE.
That is the second buyback in as a few years and can profit the federal government because it holds 51.8% in India’s largest fuel firm. The federal government had in 2020-21 gained Rs 747 crore in a Rs 1,046 crore buyback introduced by GAIL.
The whole variety of shares represents 2.5% of the corporate’s paid-up capital and free reserves as on March 31, 2021, GAIL stated within the assertion.
A buoyant backside line is the driving drive behind the share buyback, thought-about a tax-efficient method of rewarding shareholders. Buybacks are engaging in tax phrases even after contemplating the ten% tax on long-term capital good points.
India’s largest fuel firm has been constantly rewarding its shareholders by way of common dividends, concern of bonus shares and in addition buyback of shares at a premium.
Through the present monetary yr (2021-22), the corporate paid the highest-ever interim dividend of Rs 3,996 crore on the fee of 90% of the face worth.
The corporate issued bonus shares in 2008-09, 2016-17, 2017-18 and 2019-20. In March 2021, it accomplished buyback of about 6.9 crore shares at Rs 150 every.
GAIL owns and operates round 13,840 km, or 74% of the overall size of the cross-country pure fuel pipeline community within the nation. It sells round 52% of all pure fuel offered in India and 44% of fuel imported in ships. It provides 67% of fuel consumed by the fertiliser trade, 53% by energy and 60% by town fuel sector.
The corporate has additionally forayed into alternate power akin to inexperienced hydrogen, renewables and bio-fuels tasks.

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