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Govt receives 497 Cr from GAIL buyback of 5.7 Cr shares for 1,083 Cr

The government earned Rs.497 crore from the GAIL buyback, while other shareholders received Rs.586 crore from the buyback for which the last day to bid shares for GAIL's buyback was June 7, 2022.Premium
The government earned Rs.497 crore from the GAIL buyback, while other shareholders received Rs.586 crore from the buyback for which the last day to bid shares for GAIL's buyback was June 7, 2022.

  • In May 2022, the Maharatna company GAIL India Ltd filed draft papers for the purpose of buyback up to 5,69,85,463 fully paid up equity shares with a face value of Rs. 10/- each at a price of Rs. 190/- each equity share for an aggregate consideration of Rs. 1082,72,37,970.00/-.

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In May 2022, the Maharatna company GAIL India Ltd filed draft papers for the purpose of buyback up to 5,69,85,463 fully paid-up equity shares with a face value of Rs. 10/- each at a price of Rs. 190/- each equity share for an aggregate consideration of Rs. 1082,72,37,970.00/-. The government earned Rs.497 crore from the GAIL buyback, while other shareholders received Rs.586 crore from the buyback for which the last day to bid shares for GAIL's buyback was June 7, 2022.

According to a Tweet from the Department of Investment and Public Asset Management (DIPAM), “Government has received Rs.497 cr from GAIL Buyback. Out of the Buyback, Rs.586 cr has been received by other shareholders."

In its meeting on May 27, 2022, the Board of Directors proposed a final dividend of 1.00 per equity share with a face value of 10 each for FY 2021-22, subject to approval by the Company's members. This is in addition to the interim dividend of 9.00 per equity share paid by the Company during the fiscal year. GAIL paid a total dividend of 3,994.26 Cr for the fiscal year ending March 31, 2022, compared to 2,237.11 Cr for the same quarter in 2021.

GAIL (India) Limited has recently installed a dedicated pipeline to provide fuel to the HPCL Mittal Energy Ltd. (HMEL) refinery in Bhatinda. The dedicated pipeline, which would deliver 1 MMSCMD gas to HMEL, cost 142 crore to install. The 44.26 km 12 inch diameter pipeline (total capacity - 5 MMSCMD) is a branch line of the 500 km Dadri - Bawana - Nangal Pipeline (DBNPL). GAIL (India) Ltd recorded a 62 percent rise in Revenue from Operations to Rs. 91,646 crore in FY22 as compared to Rs. 56,738 crore in FY21, a 113 per cent increase in Profit before Tax (PBT) to Rs. 13,590 crore in FY22 as compared to Rs. 6,386 crore in FY21, and a 112 per cent increase in Profit after Tax (PAT) to Rs. 10,364 crore in FY22 as against Rs. 4,80 Cr in FY21, GAIL's Annual Revenue, PBT, and PAT are the highest they've ever been.

According to Mr. Manoj Jain, CMD GAIL “GAIL has incurred a Capex of Rs. 7,738 crore mainly on Pipelines, Petrochemicals, Equity to JVs, etc. GAIL’s spending in CSR during the year is 3% against the mandate spend of 2%. GAIL has paid Dividend for Rs. 3,996 crore (@ Rs. 9/share), in addition GAIL Board has recommended Final Dividend @ Rs.1/share subject to approval of Shareholders, which makes total Dividend for the FY 2021-22 to Rs.4,440 crore, which is highest ever by GAIL."

He further added, “Company is also tying up new gas sources to meet the emerging gas demand in Domestic market and continue its foot prints in International Market. The Company has also embarked upon alternate energies like green hydrogen, renewables and bio-fuels projects which are of national importance and would likely provide a transition to the future."

GAIL India's shares closed today at 140.10, down 0.28 per cent from the previous closing of 140.50. GAIL (India) is now trading below the 5 days, 20-day, 50 days, 100-day, and 200-day moving averages, based on the last traded price.

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