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GAIL Buyback 2021: GAIL Announces ₹1,046.35 Crore Share Buyback

GAIL Buyback 2021: GAIL Announces ₹1,046.35 Crore Share Buyback

Gail buy back


GAIL (India) Ltd. is India’s flagship natural gas company as a Central Public Sector Undertaking (PSU) which is the largest state-owned natural gas processing and distribution company in India. It was incorporated with an objective to create gas sector infrastructure for sustained development of the natural gas sector in the country. The Company is engaged in gas marketing and distribution of liquid petroleum gas (LPG) . Besides gas infrastructure Company also created new milestones with its strategic diversification into petrochemicals, telecom and liquid hydrocarbons. GAIL is also expanding its business to become a player in the international market. In a rapidly changing scenario, company is spearheading the move to a new era of clean fuel industrialization, creating a quadrilateral of green energy corridors that connect major consumption centers in India with major gas fields, LNG terminals and other cross border gas sourcing points

Buyback price 150/- Per Share
Buyback Record Date 28-Jan-2021
Total Buyback Value 1046 Cr
Total Buyback Share 6,97,56,641
Buyback type Tender Offer

Buyback Details:

On January 15 2021, Company informed to the stock exchanges that the Board of Directors of GAIL (India) ltd. have approved the proposal of the Company to buyback of 6.98 Cr fully paid equity shares Which Representing 1.55% of the total number of fully paid equity shares. The aggregate amount of buyback is Rs. 1046 Cr, at a price of Rs. 150/- per share. Company  offering 11.94% premium to investor as of current market price of Rs 134.00 on 22th January.

How to participate in buyback?

– For eligibility criteria, Investor should carry the share of GAIL in his Demat account as on record date of 28th January.

– After the record date company will announce tender offer period where you can tender your share through your broker for participating in buyback process

-Once the share are tendered, that share will be debited from your Demat account and any offer of  share tenders which are made over and above the acceptance ratio of the company will be credited back to the applicant’s Demat account

-Then on pre-determine date the payment will be credited to your bank account for accepted shares

Shares CMP BuyBack Price Acceptance ratio Accepted share Profit on BuyBack Profit %
1330 134 150 70% 931 13965 7.84
1330 134 150 60% 798 11970 6.72
1330 134 150 50% 665 9975 5.60
1330 134 150 40% 532 7980 4.48
1330 134 150 30% 399 5985 3.36

Profit from Buyback as per Acceptance ratio

Retail Investor who is looking for opportunity for short term period can buy share of GAIL of up to 200,000 rupees as on record date and can participate in tender offer of the company. We are expecting the acceptance ratio to be range between 40%-70% and could give potential return of 4.5%-8%. The potential return could come with a time period of two-three month. However there is an also risk involve where acceptance Ratio can vary and investor have to sell unaccepted share in an uncertain price

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