Gail Buyback 2021: State-run gas utility GAIL will spend up to Rs 1,046 crore to buy back 1.55% of its total shares, the company said in a public filing. The board green-lighted the buyback plan on Friday. The company would repurchase 6.97 crore shares at a rate of Rs 150 per equity share, an 8% premium to Friday’s price of Rs 139.
GAIL (India) Ltd. is a Central Public Sector Undertaking (PSU) under the Ministry of Petroleum and Natural Gas, with the mission of accelerating and optimizing the effective and economic use of Natural Gas and its fractions for the benefit of the national economy.
GAIL, having started as a Gas Transmission Company during the late eighties, has grown organically by building a large network of Natural Gas pipelines covering over 11,000 km; two LPG Pipelines covering more than 2,000 km; six Gas Processing plants for the production of LPG and other liquid hydrocarbons, with a combined production capacity of around 1.3 MMTPA, and a gas-based integrated petrochemical plant of capacity 810,000 TPA. The Company also has 70% equity share in Brahmaputra Cracker and Polymer Limited (BCPL) which has set up 280,000 TPA polymer plant in Assam. Further, GAIL is a co-promoter of ONGC Petro-additions Limited (OPaL) which is implementing a greenfield petrochemical complex of 1.4 MMTPA polymer capacity at Dahej in the State of Gujarat. The company has integrated upstream into the business of Exploration & Production with participating interests in 11 E&P Blocks, including 2 blocks in Myanmar. GAIL has also integrated downstream into the high growth retail City Gas Distribution business both in India and abroad.
Gail Buyback Offer Deal 2021
| Symbol | GAIL |
| BuyBack Period | 25 Feb 21 to 10 Mar 21 |
| Offer Amount | ₹ 1046 Crores |
| Offer Type | Tender |
| Offer Price | ₹ 150 Per Equity Share |
| BuyBack Record Date | Jan 28 2021 |
| Date of Public Announcement | Jan 15 2021 |
| Buyback Number of Shares | 6,97,56,641 |
| Face Value | ₹ 10 |
| Book Running Lead Manager | IDBI Capital Markets & Securities Limited |
| Registrar | MCS Share Transfer Agent Limited |
| Contact person name number and Email id | Mr. Amarjit Singh admin@mcsregistrars.com |
Profit & Loss Consolidated Figures Of Gail
| Particular | Mar 2011 | Mar 2012 | Mar 2013 | Mar 2014 | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales + | 35070 | 44093 | 50974 | 61765 | 60557 | 52053 | 48552 | 54496 | 76190 | 72508 | 61776 |
| Expenses + | 28508 | 37054 | 43547 | 53780 | 54923 | 47524 | 42537 | 46701 | 66283 | 63495 | 54646 |
| Operating Profit | 6562 | 7040 | 7427 | 7985 | 5635 | 4529 | 6015 | 7796 | 9907 | 9013 | 7130 |
| OPM % | 19.00% | 16.00% | 15.00% | 13.00% | 9.00% | 9.00% | 12.00% | 14.00% | 13.00% | 12.00% | 12.00% |
| Other Income | 493 | 722 | 887 | 1250 | 942 | 737 | 1218 | 954 | 1751 | 3805 | 4018 |
| Interest | 378 | 366 | 437 | 669 | 652 | 822 | 509 | 295 | 159 | 309 | 330 |
| Depreciation | 878 | 1041 | 1319 | 1644 | 1433 | 1496 | 1541 | 1527 | 1667 | 2080 | 2242 |
| Profit before tax | 5799 | 6355 | 6558 | 6922 | 4492 | 2949 | 5183 | 6928 | 9831 | 10429 | 8576 |
| Tax % | 31.00% | 31.00% | 34.00% | 32.00% | 32.00% | 37.00% | 35.00% | 31.00% | 33.00% | 9.00% | |
| Net Profit | 4021 | 4444 | 4374 | 4786 | 3160 | 1869 | 3368 | 4799 | 6546 | 9422 | 8519 |
| EPS in Rs | 8.92 | 9.85 | 9.7 | 10.61 | 7.01 | 4.14 | 7.47 | 10.64 | 14.51 | 20.89 | 18.89 |
| Dividend Payout % | 24.00% | 25.00% | 28.00% | 28.00% | 24.00% | 37.00% | 56.00% | 43.00% | 25.00% | 31.00% |
Profit from the buyback on the bases of acceptance Ratio:
Buy 1333 Shares (2,00,000/150=1333) at CMP of Rs. 138.50 approx (Closing Price on 15th Jan 2021) [Expected Acceptance Ratio: 20-30%]
| Acceptance Ratio | 33.00% | 50.00% | 75.00% | 100.00% |
| Amount Invested in Buyback | 184667 | 184667 | 184667 | 184667 |
| No. of Shares buyback | 440 | 666.67 | 1000 | 1333.33 |
| BuyBack Profit | 5060 | 7667 | 11500 | 15333 |
| Profit(%) | 2.74% | 4.15% | 6.23% | 8.30% |
How to Participate in buyback?
- Firstly, to be eligible for the buyback the investor should have shares of Gail Buyback 2021 in Demat or physical form as on record date [28.01.2021]
- Once you have shares in Demat, you can participate in the buyback process which is opening from [25.02.2021 to 10.03.2021], by selling your shares through your broker on NSE or BSE.
- Then on [19.03.2021] the payment will be given to you for accepted shares and unaccepted shares will be returned to your Demat account.
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