Block deal booster for GAIL

DALAL STREET SPIKES

Gas transmission PSU, GAIL India surged over 6.5 per cent on huge volumes of 54.17 lakh shares. According to market talks, one of the leading operators is believed to be active buyer at this counter.

The stock on back of a block deal, finally closed at Rs 233.60 as against its previous day close of Rs 219.20. Selected FIIs including Capital International is also believed to be active buyer at this counter, sources added.

Dealers said, there is overall interest in the oil & gas sector resulting in sharp gains in GAIL as well. The stock has staged a recovery from the lower levels after the completion of its public issue. From a low of Rs 204.55 on March 23, the stock now gained 14.21 per cent to today's close of Rs 233.60.

GAIL currently trades at a premium to the public issue price of Rs 195. In fact, retail investors got the shares at still lower price of Rs 185.25 (at 5 per cent discount to the price of Rs 195 determined as per the book-building route).