GAIL Approves Share Buyback Plan of Rs 1,083 Cr: Record Date, Share Price & More

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GAIL Approves Share Buyback Plan of Rs 1,083 Cr: Record Date, Share Price & More
Credit: © Reuters.

 By Malvika Gurung

Investing.com -- The state-run natural gas company GAIL (NS: GAIL ) informed that its board approved a buyback of shares worth Rs 1,082.72 crore, under a share buyback plan on Thursday.

As per the plan, the company will buy back at most 5,69,85,463 fully paid-up equity shares of the face value of Rs 10 apiece, priced at Rs 190, the company stated in an exchange filing. This price is set at a premium of 24% compared to GAIL’s closing price on Wednesday.

The record date for the same has been set at April 22, 2022, and the buyback will be offered on a proportionate basis through a tender offer route under the Sebi Regulations, 2018, cited an ET report.

The government owns a 51.8% stake in the gas provider and many believe that could participate in the buyback process.

To put some light, share buyback or share repurchase is a process when a company purchases its shares from stakeholders and is considered an efficient way (tax-wise), or an alternative for returning money to the shareholders.

In FY 2020-21, the state-owned company had conducted a share buyback and the government received Rs 747 crore in the event.

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