gail: GAIL will buy back Rs 1.1k crore stock at 24% premium | India News – Times of India

NEW DELHI: State-run gasoline 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 gasoline 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 mentioned. A buoyant backside line is the driving drive behind the share buyback, thought of a tax-efficient approach of rewarding shareholders. Buybacks are engaging in tax terms even after contemplating the ten% tax on long run capital good points.
India’s largest gasoline firm has been constantly rewarding its shareholders via common dividends, concern of bonus shares and likewise buyback of shares at a premium. Throughout the present monetary yr, the corporate paid the highest-ever interim dividend of Rs 3,996 crore on the charge of 90% of the face worth. It issued bonus shares in 2008-09, 2016-17, 2017-18 and 2019-20. In March 2021, it accomplished buyback of 6.9 crore shares at Rs 150 every.

Leave a Comment