GAIL jumps 3% after utility major declares interim dividend

NEW DELHI – Shares of state-owned gas utility major GAIL (India) climbed 2.6 per cent in early trade on Monday as the company declared a second interim dividend of 50 per cent (Rs 5 per share) for the current fiscal year ending March 31, 2022.

The dividend payout will be Rs 2,220.19 crore with a record date of March 22.

GAIL’s scrip rose to a high of Rs 156.40 as against Rs 152.40 at previous close on the National Stock Exchange.


"The decision (to issue dividend) was taken by the board of directors of GAIL, a Maharatna CPSE under the Ministry of Petroleum & Natural Gas, at their meeting here on March 11," it said.

For the current fiscal 2021-22, GAIL has already declared an interim dividend of Rs 4 per share to its shareholders in December 2021. The two interim dividends total to Rs 9 per equity share (90 per cent on the paid-up equity share capital). Total dividend payout is Rs 3,996.35 crore.

Manoj Jain, chairman and managing director, GAIL, stated that the company shareholders have been provided with steady long-term returns on their investments.

Based on the current shareholding of 51.45 per cent, a dividend of Rs 1,142.29 crore shall be paid to the government and Rs 1,077.90 crore to other shareholders, PTI reported.

In the October-December quarter, GAIL’s net profit rose 121 per cent to Rs 3,288 crore from Rs 1,487 crore in the year-earlier period, driven by spectacular gains in the natural gas marketing and LPG business. Revenue from operations rose 67 per cent to Rs 25,776 crore.