In a meeting held today by GAIL Board of Directors they have approved the buyback of 6.97 crore equity shares. The gas distributor will buy back 2.5% of the total paid up capital of the face value of Rs.10 each and the amount of total tally is up to Rs.1046.35 crore.
The price is fixed at Rs.150 per share with 4.1% premium. The interim dividend is also set at Rs.2.5 per share and the date is also fixed i.e., Jan 28, 2021 for buyback and dividend.
The state owned gas distributor has 15.74% of foreign investments and the stake of government is 51.76%. At stock exchange its shares are trading 6 times before seeing a downfall of 5.2% after the announcement.