Gail (India) trades 1:3 ex-bonus; stock cracks 5%

NEW DELHI: Shares of Gail (India) declined as much as 5 per cent in early trade on the BSE after the stock turned ex-bonus in the ratio of 1:3.

The board of the company on January 27, 2017 approved the issue of bonus shares in the ratio of 1:3, which means one bonus share of Rs 10 each on every existing three fully paid-up equity shares of Rs 10 each.

The scrip was trading 3.59 per cent down at Rs 374.80 around 9.50 am (IST). Shares of the company opened at Rs 373.50 and touched a high and low of Rs 376 and Rs 369.55, respectively, in trade so far. Benchmark BSE Sensex was down 50.39 points, or 0.17 per cent, at 28,851.55.

The company has fixed March 11, 2017 as the record date for the purpose of issue of ascertaining the eligibility of shareholders for issuance of bonus shares.

For the quarter ended December 31, 2016, the company reported a net profit of Rs 982.92 crore, up 47.97 per cent, against Rs 664.26 crore in the corresponding quarter last year. Revenue of the company declined 8.42 per cent year-on-year to Rs 12,318.56 crore for the quarter under review.

It had reported topline figures of Rs 13,451.58 crore in the same quarter a year ago.

On a year-to-date basis, shares of the company have rallied 18.82 per cent to Rs 517.65 till March 8, whereas BSE Sensex gained 8.67 per cent during the same period.