Gail to buy back 57 million shares at 22% premium

New Delhi: Gail (India) Ltd will buy back 57 million shares at 190 each, a 22% premium to Thursday’s closing price, the state-run natural gas company said.

Gail plans to spend Rs 1,083 crore, excluding taxes, on the repurchase of shares representing 2.5% of its paid-up capital and free reserves as of March 31, 2021. The government owns 51.80% of Gail and will have the option to tender some shares in the buyback programme.

“Gail has been consistently rewarding its shareholders through regular dividends, issue of bonus shares and also buyback of shares at a premium,” the company said in a statement. In the current financial year, Gail has paid the highest ever interim dividend of Rs 3,996 crore, it added. The company issued bonus shares in financial years 2008-09, 2016-17, 2017-18 and 2019-20.