InvestorQ : What are the terms of the buyback of shares announced by GAIL?
Arya Nanda made post

What are the terms of the buyback of shares announced by GAIL?

Anjana Aiyar answered.
11 months ago

The buyback offer of GAIL India had been announced long back and now the actual buyback offer will open on 25 February. The buyback will be available to all the shareholders whose names appeared in the register on the record date of 28 January. That will be the cut-off date so this will apply to shareholders who bought the stock prior to 25 January.

GAIL will buy back up to 6.97 crore equity shares at an offer price of Rs.150/share, which is around 7% higher than the current market price. The buyback of shares would represent nearly 1.55% of the total outstanding paid up equity of GAIL. At the tender offer price of Rs.150 per share, the size of the buyback will be close to Rs.1046 crore.

The buyback offer will close on the 10th of March and shareholders who qualify for the buyback can tender their shares before that date. GAIL has already confirmed that the entire buyback will be done through internally generated resources only. In the current year, the government has relied heavily on buyback of shares by PSUs to fund its massive divestment program, albeit in a small way.