GAIL India Buyback Review, Offer Details, Price, Dates, Size & more
Last Updated Date: Nov 17, 2022In this article, we will discuss about GAIL India Limited Buyback offer, buyback price, buyback size, GAIL India Buyback record date, company financial, buyback necessity and its impact on company.
To track the real time share price of this Buyback, click on this link – Gail India Share Price
GAIL India Limited Buyback Details
| Buyback Type | Tender Offer |
| Opening Date | Feb 25, 2021 |
| Closing Date | Mar 10, 2021 |
| Buyback Offer Amount | Rs.1,046.35 Crore |
| Buyback No. of Shares | 6,97,56,641 |
| Face Value | Rs.10 |
| Date of Buyback Approval | January 15, 2021 |
| Date of Public Announcement | January 18, 2021 |
| Buy Back Price | Rs.150 |
| Buy Back Premium | 44.65% |
| Date of Board Meeting | January 15, 2021 |
GAIL India Buyback Opening and Closing Date
The starting and closing date of this buyback is from Feb 25, 2021 to Mar 10, 2021.
GAIL India Buyback Cash Offer
Cash Offer to Buy-back up to 6,97,56,641 fully paid-up equity shares of the Company of face value of Rs.10 each, representing 1.55% of the issued, subscribed and paid-up Equity Shares of the Company.
GAIL India Buyback Record Date
The decided record date is JANUARY 28, 2021.
GAIL India Buyback Price
At a price of Rs.150 per Equity Share.
GAIL India Buyback Size
At a buyback price of Rs.150 payable in cash for an aggregate maximum amount of Rs.1,046.35 Crore.
GAIL India Limited Buyback Acceptance Query
You can check for Buyback Acceptance query here. Just click on the given link and it will redirect you to buyback acceptance query page.
GAIL India Limited Buyback Acceptance Ratio
Find profit & profit percentage based on various acceptance rate, The profit is calculated based on 1000 shares.
| Acceptance Ratio | Total Shares Accepted | Buyback Price | Buyback Amount | Profit | Profit% |
| 20% | 200 | 150 | 30000 | 530 | 0.36% |
| 40% | 400 | 150 | 60000 | 1060 | 0.72% |
| 60% | 600 | 150 | 90000 | 1590 | 1.08% |
| 80% | 800 | 150 | 120000 | 2120 | 1.44% |
| 100% | 1000 | 150 | 150000 | 2650 | 1.80% |
Profit is calculated from Feb 23, 2021 share price i.e. Rs.147.35 per share of GAIL India Limited.
According to the above table, if a shareowner applies for 1000 shares of GAIL India limited & gets 20% acceptance from the company and the owner with 1000 shares will sell 200 shares @ Rs.150 per share & receive Rs.530 as profit amount & 0.36% profit percentage on selling these 200 shares back to the company.
Similarly, if the owner gets 60% acceptance of share from the company, the owner will sell 600 shares @ Rs.150 & receive a profit of Rs.1590 @ 1.08% profit percentage.
GAIL India Buyback Overview
GAIL (India) Limited (“GAIL”), a Maharatna Company, was incorporated on August 16, 1984 as a Central Public Sector Enterprise under the name Gas Authority of India Limited under Ministry of Petroleum & Natural Gas, Govt. of India with mission of “Accelerating and optimizing the effective and economic use of Natural Gas and its fractions for the benefit of the national economy”.
Well, GAIL has its presence along entire natural gas value chain comprising of gas transmission & marketing, LPG transmission, gas processing, petrochemical, LNG imports, Exploration & Production and city gas distribution. GAIL has also diversified into renewable energy business.
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GAIL India Buyback – Company Finances
The brief audited consolidated financial information of the Company for the last 3 financial years are:
[In Rs. Crores]
| Particulars | Sep 30, 2020 (Unaudited) | 12 Months period ended March 31 (Audited) |
||
| 2020 | 2020 | 2019 | 2018 | |
| Total Income | 26,697.18 | 73,293.19 | 76,671.57 | 54,812.49 |
| Total Expenses (excluding finance costs, depreciation & amortization, tax and exceptional items) | 23,771.14 | 63,506.97 | 65,571.66 | 46,191.56 |
| Interest | 76.93 | 108.50 | 138.54 | 275.11 |
| Depreciation | 942.58 | 1,835.99 | 1,550.22 | 1,415.14 |
| Profit before tax | 1,906.53 | 7,943.36 | 9,084.82 | 6,958.37 |
| Profit /(Loss) after tax | 1,495.18 | 6,620.63 | 6,025.67 | 4,618.41 |
| Equity Share Capital | 4,510.14 | 4,510.14 | 2,255.07 | 2,255.07 |
| Reserve and Surplus | 38,922.15 | 37,343.85 | 36,946.99 | 32,986.43 |
| Networth | 43,432.29 | 41,853.99 | 39,202.06 | 35,241.50 |
| Total Debt | 3,828.63 | 3,757.10 | 1,001.05 | 2,080.46 |
GAIL India Limited Buyback Dates
| Date of Board Meeting approving the Buyback | January 15, 2021 |
| Date of publication of Public Announcement for Buyback | January 19, 2021 |
| Record Date for determining the Buyback Entitlement and the names of Eligible Shareholders | January 28, 2021 |
| Buyback Opening date | February 25, 2021 |
| Buyback Closing date | March 10, 2021 |
| Last Date of verification of Tender Forms by the Registrar | March 17, 2021 |
| Last date of intimation regarding acceptance / non-acceptance of Tendered Equity Shares to the BSE Limited by the Registrar | March 18, 2021 |
| *Last date of Settlement of Bids on the BSE Limited | March 19, 2021 |
| Last date of return of unaccepted Equity Shares by BSE Limited | March 19, 2021 |
| *Last date of Extinguishment of Equity Shares | March 26, 2021 |
Details of Public Announcement
This is to say, in accordance with Regulation 7(i) of the Buyback Regulations, the Public Announcement was published on January 19, 2021 in the following newspapers:
| Publication | Language | Edition |
| Business Standard | English | All Editions |
| Business Standard | Hindi | All editions |
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Necessity of GAIL India Buyback
The Buyback would help in optimization of the capital structure and improving return on equity, by reduction in the equity base, thereby leading to long term increase in shareholders‟ value.
Further, the Buyback, which is being implemented through the Tender Offer route as prescribed under the Buyback Regulations, would involve allocation of higher of number of shares as per their entitlement or 15% of the number of shares to be bought back, reserved for the small shareholders. The Company believes that this reservation of 15% for small shareholders would benefit a large number of public shareholders, who would get classified as “small shareholder”.
Impact of GAIL India Buyback on the Company
They believe the Buyback is not likely to cause any material impact on the profitability/ earnings of the Company except a reduction in the amount available for investment, which the Company could have otherwise deployed towards generating investment income.
They believe the Buyback will not in any manner impair the ability of the Company to pursue growth opportunities or meet its cash requirements for business operations. The Buyback is expected to contribute to the overall enhancement of shareholder value and result in an increase in the return on equity of the Company.
In terms of the Buyback Regulations, under the Tender Offer route, the promoter and promoter group of the Company have an option to participate in the Buyback.
The Buyback of Equity Shares will not result in a change in control or otherwise affect the existing management structure of the Company.
The debt-equity ratio post Buyback will be compliant with the permissible limit of 2:1 prescribed by Section 68 of the Companies Act and Regulation 4(ii) of the Buyback Regulations, even if the response to the Buyback is to the extent of 100% (full acceptance).
Salient financial parameters consequent to the Buyback based on the latest audited financial statement of the Company for September 30, 2020 are as under:
| Parameters (based on audited standalone financial statements for September 30, 2020) | Pre Buy-back | Post Buy-back (Assuming Full Acceptance) |
| Net worth (Rs in crores) | 41,853.99 | 40,807.64 |
| Return on Net worth (%) | 15.82 | 16.22 |
| Earnings Per Share (Rs) | 14.68 | 14.91 |
| Book Value per Share (Rs) | 92.80 | 91.90 |
| Price / Earnings Ratio (P/E)** | 5.21 | 5.13 |
| Total Debt / Equity Ratio | 0.13 | 0.14 |
Basis of Calculating GAIL India Buyback Price
The Buyback Offer Price of Rs. 150/- per Equity Share has been arrived at after considering various factors such as the average closing prices of the Equity Shares on the Stock Exchanges where the Equity Shares of the Company are listed, the net-worth of the Company and the impact of the Buyback on the key financial ratios of the Company.
The Buyback Offer Price of Rs. 150/- per Equity Share represents
(i) a premium of 44.65% on BSE and 41.14% on NSE over the volume weighted average price of the Equity Shares on BSE and NSE, respectively for 26 weeks preceding the Board Meeting date;
(ii) Here, a premium of 10.13% on BSE and 10.28% on NSE over the volume weighted average price of the Equity Shares on BSE and NSE, respectively for 2 weeks preceding the Board Meeting date;
(iii) a premium of 10.54% on BSE and 10.54% on NSE over the closing price of the Equity Shares on BSE & NSE, respectively as on the date of intimation to BSE & NSE for the Board Meeting to consider the proposal of the Buyback.
The closing market price of the Equity Shares as on the date of intimation to the BSE and NSE for the Board Meeting for considering the Buyback i.e. January 11, 2021, was Rs. 135.70 per Equity Share and Rs. 135.70 per Equity Share, respectively.
Know more about other Buybacks and their Registrar details
Source of Funds for the Buyback
Assuming full acceptance, the funds that would be employed by the Company for the purpose of the Buyback of 6,97,56,641 Equity Shares at a price of Rs. 150/- per Equity Share would be Rs. 1,046.35 Crore/-
The Buyback shall be made out of the free reserves of the Company as at March 31, 2020 (i.e. the last audited standalone and consolidated financial statements available as on the date of Board Meeting recommending the proposal of the Buyback). The Company shall transfer from its free reserves a sum equal to the nominal value of the Equity Shares bought back through the Buyback to the Capital Redemption Reserve Account and the details of such transfer shall be disclosed in its subsequent audited balance sheet.
Funds for the Buyback will be met out of internally generated cash resources of the Company. The Company does not intend to raise additional debt for the explicit purposes of the Buyback. Accordingly, borrowed funds will not be used for the Buyback. However, if required, the Company may borrow funds in the ordinary course of its business.
This Buyback is not likely to cause any material impact on the earnings of the Company, except for the cost of financing the Buyback, being a reduction in the treasury income that the Company could have otherwise earned on the funds deployed.
GAIL India Limited – Manager to the Buyback
| IDBI Capital Markets & Securities Limited 6th floor, IDBI Tower, WTC Complex, Cuffe Parade, Mumbai 400 005 Tel No.:+91 22 2217 1700 Fax No.: +91 22 2215 1787 Contact Person: Sumit Singh Email: gail.buyback2021@idbicapital.com Website: www.idbicapital.com SEBI Registration Number: INM000010866 Validity Period: Permanent CIN: U65990MH1993GOI075578 |
GAIL India Ltd – Registrar to the Buyback
|
MCS Share Transfer Agent Limited
F-65, 1st Floor, Okhla Industrial Area, Phase-1, New Delhi – 110020 Tel No: 011-41406149 Fax: 011-41709881 Contact Person: Mr. Amarjit Singh Email: admin@mcsregistrars.com Website: www. mcsregistrars.com SEBI Registration Number : INR000004108 Validity Period: Permanent CIN: U67120WB2011PLC165872 |
GAIL India Ltd Contact Details
| Company Contact Details |
| GAIL (INDIA) LIMITED (A Government of India Undertaking-A Maharatna Company) Registered Office: 16, Bhikaiji Cama Place, R. K. Puram, New Delhi-110066 CIN: L40200DL1984GOI018976 Contact Person: A. K. Jha, Company Secretary & Compliance Officer Tel.: 011-26170740, Fax: 011-26170740 | E-mail: shareholders@gail.co.in | Website: www.gailonline.com |
GAIL India Limited Buyback News
News 1 – Buyback PDF / Draft Letter of Offer [Download]
News 2 – GAIL India Buyback / Letter of Offer [Download]
FAQs of GAIL India Buyback
What is the GAIL India Buyback Period?
GAIL India Buyback Period is briefly the time interval starting from the date of declaration of results of the postal ballot through remote e-voting i.e. Feb 25, 2021. The period basically ends on the date of payment of consideration to Eligible Shareholders who participated in the Buyback, i.e. Mar 10, 2021.
What type of buyback is GAIL India Buyback?
This company has chosen the route of Tender offer to repurchase the shares from the eligible shareholders. Tender offer route is one of the Two Routes generally chosen by the companies, i.e. Tender Offer and Open Market Through Stock Exchanges.
What is the GAIL India Buyback Offer?
GAIL India Buyback Offer refers to the number of shares the company plans to buy back from the eligible shareholders. Herein, the company proposes to buyback 6,97,56,641 Fully paid up Equity shares, adhering to the buyback price.
When GAIL India Buyback offer will start?
As per the released schedule, the GAIL India Buyback offer will start on Feb 25, 2021. This is the opening date from when the Buyback will open for all shareholders. You will find the updated records of GAIL India Buyback at all times, we ensure you have access to the right data.
When is the closing date of GAIL India Buyback?
For ease in access to the dates and related aspects, we have segregated the closing date of GAIL India Buyback. The buyback would close on Mar 10, 2021. The closing date is the last day for which the Buyback shall be open for the shareholders.
What is the offer price for GAIL India Buyback?
The amount at which the shares are taken back by the company is referred to as GAIL India Buyback offer price. Herein, each and every fully Paid-up equity share is priced at Rs.150, the price paid to each eligible shareholder.
What is the record date for GAIL India Buyback offer?
Record date of GAIL India Buyback is JANUARY 28, 2021. Record date is generally the day when eligible shareholders are declared. Furthermore, complying with Buyback regulations, letter of offer and Tender form is sent to the eligible shareholders.
What is the issue size of GAIL India Buyback?
GAIL India Buyback Size is Rs.1,046.35 Crore and is the total worth of Equity Shares the company plans on taking back. This amount is obtained from the total number of equity shares, multiplied by the Buyback price.
What is the necessity for GAIL India Buyback?
Objective of the GAIL India Buyback is to enhance the total return made by equity shareholders. Herein, the excess funds are given to the equity shareholders, which are over and above its ordinary capital requirements and in excess of any current investment plans. Through buyback, the company will distribute the surplus cash to shareholders as per their holding proportion.
Who is the Registrar to GAIL India Buyback offer?
The designated registrar of GAIL India Buyback is MCS Share Transfer Agent Limited. You can find all the details related to the registrar in this report and contact them if you have any queries. You can check the details of the registrar, contact person, email address and more.
Who is the Manager to the GAIL India Buyback offer?
Manager to the GAIL India Buyback is IDBI Capital Markets & Securities Limited. Manager basically ensures that the company following up buyback strictly adheres to and in conformity with the provisions of the Companies Act and Buyback Regulations.
How to check GAIL India buyback acceptance ratio?
Acceptance ratio is basically the proportion of shares the company accepts, to the final number of shares tendered. It refers to how much the company would buyback and how profitable it would be for you. You can also check how much profit (%) you will earn. Click on the link and check on the website page.
Where to find GAIL India Buyback Dates / Events?
You can check the table for the list of events, as designed for the buyback. This article is your one and final destination to check all the GAIL India Buyback information. You will encounter a section exclusively set to record the dates, in this article, referred to as GAIL India Buyback Dates.
What can be the Impact of GAIL India Buyback on the Company?
The Buyback will not in any manner impair the ability of the Company to pursue growth opportunities or meet its cash requirements for business operations. The Buyback is expected to contribute to the overall enhancement of shareholder value and result in an increase in the return on equity of the Company. This Buyback is being undertaken, inter alia, for helping the Company to return surplus cash to the Eligible Shareholders broadly in proportion to their shareholding.
Where to find complete details on GAIL India Buyback?
As mentioned already, this page would give you every single detail about this buyback. Also, you find the link to download the Draft / Letter of Offer. Each and every section is vividly and carefully placed, giving you insights into all major as well as minor aspects of the ratio. The article is also inclusive of all the links.
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