GAIL board okays share buyback plan of Rs 1,046 crore
New Delhi: State-run gas utility GAIL NSE -3.82 % will spend up to Rs 1,046 crore to buy back 1.55% of its total shares, the company said in a public filing.
The board green-lighted the buyback plan on Friday. The company would repurchase 6.97 crore shares at a rate of Rs 150 per equity share, an 8% premium to Friday’s price of Rs 139.
GAIL’s share price has risen 21% in the last four weeks of trading.
The company would accept shares from all equity shareholders of the company on a proportionate basis through a tender offer route.
The buyback is expected to give the government a chance at offloading its shares in the company and raise funds in year public finance is under stress.
