GAIL share buyback offer to open on February 25: All you need to know
According to a statement issued by GAIL, it will buy back shares from all existing shareholders and beneficial owners as on the record date, which is January 28, and this will be done on a proportionate basis.
State-owned gas utility GAIL (India) Ltd will open its buyback offer on Thursday, February 25. The offer will include 6.97 crore fully paid-up equity shares of face value ₹10 each. This offer represents 1.55 per cent of the total number of equity shares in issued, subscribed and paid-up equity share capital of the company. GAIL owns and operates a network of around 12,500km of high-pressure trunk pipelines and is a leading natural gas company with diversified interests across the natural gas value chain of trading, transmission, LPG production, LNG re-gasification, petrochemicals, and city gas.
Here’s everything you need to know about the GAIL share buyback offer:
1. According to a statement issued by GAIL, it will buy back shares from all existing shareholders and beneficial owners as on the record date, which is January 28, and this will be done on a proportionate basis.
2. The buyback will be done through the tender offer process at a price of ₹150 per equity share for an aggregate consideration not exceeding ₹1,046.35 crore.
3. The share buyback will close on March 10.
4. The funds for the buyback will be met out by the company through internally-generated cash resources.
5. The buyback offer size represents 2.50 per cent and 2.26 per cent of the aggregate of the fully paid-up equity share capital and free reserves as per the audited standalone and consolidated financial statements of the company, respectively for the financial year ended March 31, 2020.
6. The oil ministry had put on hold a plan to bifurcate GAIL (India) Ltd. GAIL has massive plans to double its pipeline network to 34,000km and the plan would have hampered the company’s ability to borrow funds to fund its infrastructural needs.