GAIL Approves Buyback & Interim Dividend; Shares Slump 5%

On Friday, shares of GAIL (India) slipped 5% to an intraday low of Rs 136.55 after the company announced that its board has approved a share buyback plan and also declared an interim dividend.

In a regulatory filing, the company said that its board has approved a buyback of over 6.97 crore fully-paid equity shares, representing 1.55% of the total number of fully paid-up equity shares in the company, at a price of Rs 150 per equity share, on a proportionate basis through a Tender Offer route.

"The public announcement setting out the process, timelines and other requisite details will be released in due course in accordance with the Buyback Regulations," GAIL added.

Further, the company's board of directors approved payment of interim dividend for the financial year 2020-21 at 25% (Rs 2.50 per share) on the paid-up equity share capital of the company.

It further notified that "the Company has fixed 28th January, 2021 (Thursday) as the record date for the purpose of the eligibility of shareholders for Buyback of equity shares well as for payment of Interim Dividend FY 2020-21."