New Delhi, January 15
GAIL (India) Ltd, the nation’s largest gas distribution firm, on Friday announced a Rs 1,046.35-crore share buyback programme as it looked to return surplus cash to shareholders, the biggest being the Government of India.
In a stock exchange filing, the company said its Board has approved the buyback of 6.97 crore shares at a price of Rs 150 per share.
The shares being bought represent 1.55% of the total number of fully paid-up equity shares. The company Board also declared an interim dividend of 25% (Rs 2.50 per share) for financial year 2020-21. The government owns 51.76% of GAIL and is expected to participate in the share buyback.
It stands to get Rs 583.6 crore from the dividend payout and another Rs 541.5 crore if it participates in the buyback by tendering a proportionate number of shares.
The buyback plan of Rs 1,046.35 crore represents “2.5% and 2.26% of the aggregate of the fully paid-up equity share capital and free reserves of the company,” GAIL said in the filing. The plan was within the statutory limits of 10%, it said.
The record date for buyback of equity shares and payment of the interim dividend will be January 28, GAIL said.
The government has asked at least eight state-run companies to consider share buybacks as it scouts for ways of raising funds to rein in its fiscal deficit. The firms asked to consider share buybacks include miner Coal India, power utility NTPC, and minerals producer NMDC. — PTI
Record date Jan 28
- In a stock exchange filing, the company said its Board has approved the buyback of 6.97 crore shares at a price of Rs150 per share
- The shares being bought represent 1.55% of the total number of fully paid-up equity shares
- The company Board also declared an interim dividend of 25% (Rs2.50 per share) for financial year 2020-21