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GAIL India Shares strikes 52-Week High on Buyback Offer Announcement

As on Thursday, shares of GAIL India soared high by a margin of 10% to its 52-week high of Rs 147.80 reportedly.

This took place a day after the public sector natural gas processing and distribution company claimed to open its buyback on 25 February for up to 6.97 crore.

It accounts for about 1.55 percent of the number of equity shares in the issued, subscribed and paid-up equity share capital of the company.

Also, it is to be noted that the share buyback offer of the company will close on 10 March.

Moreover, the record date for the company to buy back shares from all existing shareholders and beneficial owners on a proportionate basis is 28 January.

It will be through the “tender offer” process set to be at a price of Rs 150 per equity share for an aggregate consideration not more than Rs 1,046.35 crore.

According to GAIL, the funds for the buyback are projected to be utilised out of internally-generated cash resources.

However, Rs 1,046.35 crore being the aggregate amount of the buyback represents 2.50% & 2.26% of the total paid-up equity share capital and free reserves of the Company.

The stock was witnessed to be trading at Rs 146.80, scaling up by Rs 3.75, or by a margin of 2.62 percent at 11:13 hours.

It has successfully reached a 52-week high of Rs 149.45 thereby touching an intraday high of Rs 149.45 and an intraday low of Rs 143.65 respectively.

Compared to its five day average of 1,909,148 shares, the stock recorded a hike of 22.95 percent with volume expanding by more than 1.21 times.

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