Gail India Buyback will open for subscription on 25 February 2021. The company aims for an issue size of ₹1,046.35 Crores through this buyback Issue.
Gail (India) Limited
Incorporated in 1984 as Gas Authority of India Limited, GAIL (India) Limited (GAIL) is a Maharatna Company. The company is a Central Public Sector Enterprise established under the Ministry of Petroleum & Natural Gas with a mission of ‘ Accelerating and optimizing the effective and economic use of Natural Gas and its fractions for the benefit of the national economy. GAIL covers the entire natural gas value chain comprising of gas transmission & marketing, LPG transmission, gas processing, petrochemical, LNG imports, Exploration & Production, and city gas distribution and has a strong experience and expertise in this business. Apart from the LNG business, GAIL has also diversified into the renewable energy business.
GAIL owns and operates appx 12,900 Km length of pan-India natural gas pipeline network with a capacity to carry around 206 Million Metric Standard Cubic meters per day (MMSCMD) of natural gas. The company has five gas processing plants with a capacity to produce 1.4 MMTPA of LPG.
GAIL has a strong presence across India with its stake in various gas companies related to petrochemicals complex, LNG business, gas-based combined cycle power plant. GAIL has a strong focus in city gas distribution (CGD) business operating in 61 Geographical Areas throughout India and catering to around 66% of the total 62.05 lakh domestic PNG connections in the country. Out of the 2,207 CNG stations in the country, the company and its group operate 1,385 CNG stations representing 63% share. In FY 19-20, GAIL registered a record addition of 9.52 lakh household PNG connections and 311 CNG stations. Further, GAIL has equity participation in two city gas companies in Egypt and one city gas company in China. GAIL has participating interest in 9 E&P blocks in India apart from 2 blocks in Myanmar and 1 shale gas asset in the USA.
Objectives of the Issue
- Improve Return on Equity.
- Optimize the capital structure of the company.
- Increase in shareholder’s value in the long-term.
Gail India Buyback Issue Timetable
| Offer Opens On | Feb 25, 2021 |
| Offer Closes On | Mar 10, 2021 |
| Record Date | Jan 28, 2021 |
| Last Date for receipt of Tender Forms | Mar 12, 2021 |
| Finalization of Buyback Acceptance | Mar 18, 2021 |
| Last Date for settlement of bids | Mar 19, 2021 |
| Last Date for Extinguishment of Shares | Mar 26, 2021 |
Gail India Buyback Detail
| Security Name | Gail (India) Limited |
| Issue Type | Tender Offer |
| Issue Size (Shares) | 6.98 Crores |
| Issue Size (Amount) | ₹1,046.35 Crores |
| Buyback Price | ₹150 per share |
| Face Value | ₹10 per share |
| Listing At | BSE, NSE |
Buyback Ratio
| Category | Entitlement Ratio of Buyback |
|---|---|
| Reserved Category for Small Shareholders | 71 Equity Shares out of every 733 Equity Shares held on the Record Date. |
| General Category for all other Eligible Shareholders | 4 Equity Shares out of every 297 Equity Shares held on the Record Date. |
Company Financials
| Particulars | For the year/period ended (Rs. in Crores) | ||
|---|---|---|---|
| 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | |
| Total Income | 73,293.19 | 76,671.57 | 54,812.49 |
| Profit After Tax | 6,620.63 | 6,025.67 | 4,618.41 |
| Net Worth | 41,853.99 | 39,202.06 | 35,241.50 |
Stock Market Data (for preceding 3 months)
BSE
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Dec-2020 | 128.75 | 103.3 | 121.18 |
| Nov-2020 | 106.6 | 83.1 | 93.03 |
| Oct-2020 | 89.5 | 81.25 | 85.38 |
NSE
| Month | High Price | Low Price | Average Price |
|---|---|---|---|
| Month | High Price | Low Price | Average Price |
| Dec-2020 | 128.8 | 103.1 | 121.2 |
| Nov-2020 | 106.7 | 83.05 | 93.05 |
| Oct-2020 | 89.8 | 81.2 | 85.4 |
Gail India Buyback Registrar
MCS Share Transfer Agent Limited
F-65 1st Floor,
Okhla Industrial Area,
New Delhi – 110020
Phone: (+91 11) 4140 6149
Email: admin@mcsregistrars.com
Website: http://www.mcsregistrars.com/
Company Contact Information
Gail (India) Limited
16, Bhikaiji Cama Place,
R. K. Puram, New Delhi-110066
Phone: 011-26170740
Email: shareholders@gail.co.in
Website: https://gailonline.com/
Final Thoughts
A buyback occurs when the issuing company pays shareholders the market value per share and re-absorbs that portion of its ownership that was previously distributed among public and private investors. subscribing for a buyback issue is purely a personal choice. make a detailed study before you make a decision on buyback issue subscription.
Happy Investing