GAIL approves buyback of up to 5.7 cr shares, price set at ₹190. Details here


The board of state gas utility GAIL India Ltd on Thursday said it intends to buyback 1,082.72 crore worth of shares of the company under a share buyback plan.

In a stock exchange filing, the nation’s top gas transporter and distributor said it plans to buyback shares, not exceeding 5,69,85,463 fully paid up equity shares of face value of 10 each at a price of 190.

Shares of GAIL were trading 1.53% per cent higher at 155.80. The buyback price is at a 24% premium over Wednesday’s closing price of 153.40.

Buying back shares is considered a tax-efficient way of rewarding shareholders. The government owns a 51.80 per cent stake in the company and is likely to participate in the buyback.

GAIL had done a share buyback in 2020-21. The government had received 747 crore from that share buyback.

The share buyback, or share repurchase, is when a company buys back its own shares from investors or stakeholders. It can be seen as an alternative, tax-efficient way to return money to shareholders.

Buybacks are attractive in tax terms even after considering the 10 per cent tax on long term capital gains (LTCG).

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

the App to get 14 days of unlimited access to Mint Premium absolutely free!

Source link

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.