Public sector utility GAIL today announced share buyback of 6,97,56,641 equity shares of face value of Rs. 0 each (representing 1.55 % of the total number of fully paid-up equity shares in the paid-up share capital of the company) at a price of ?150 for an aggregate consideration of ?1,046.35 crore.
GAIL board also approved payment of interim dividend for the FY 2020-21 at ? 2.50 per equity share on the paid-up equity share capital of the company.
The record date for dividend as well as for the purpose of share buyback has been fixed at 28 January, 2021.
At 2:10 pm on Friday, GAIL’s scrip closed 2.3% lower at ?140.70.
GAIL (India) is the nation’s largest gas distribution firm.
The government has asked at least eight state-owned companies to consider share buybacks as it scours 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.
A buyback, also known as a share repurchase, is when a company buys its own outstanding shares to reduce the number of shares available in the open market.
Companies buy back shares for a number of reasons, such as to increase the value of remaining shares available by reducing the supply or to return surplus cash to shareholders.
News Source:- livemint