Gail dips 7% from day's high as board approves buyback, interim dividend

The board approved share buyback at price of Rs 150 per share via tender offer and declared an interim dividend of Rs 2.50 per share or 25 per cent for the financial year 2020-21.

Shares of Gail (India) were down 5 per cent at Rs 136.60 in the intra-day trade, falling 7 per cent from day's high, on the BSE on Friday after the company's board approved share buyback at price of Rs 150 per share via tender offer. The stock of the state-owned company hit a 52-week high of Rs 146.20 in the intra-day trade today.

The board also declared an interim dividend of Rs 2.50 per share or 25 per cent for the financial year 2020-21 (FY21). The company said it has fixed January 28, 2021 as the record date for the purpose of determining the eligibility of shareholders for buyback of equity shares well as for payment of interim dividend.

"Buyback of not exceeding 69.75 million equity shares of face value of Rs 10 each (representing 1.55 per cent of the total equity of the Company) at a price of Rs 150 per equity share for an aggregate consideration not exceeding Rs 1046.35 crore via tender offer," Gail India said in exchange filing.

In past three months, the stock has outperformed the market by surging 78 per cent, as compared to a 24 per cent rise in the S&P BSE Sensex.

Meanwhile, according to an analysis done by ICICI Securities, Tata Consumer Products is on course to replace Gail India in the widely-followed index during the semi-annual review slated for March. The free-float market cap — a key parameter for index inclusion—of Tata Consumer Products is currently at Rs 36,000 crore, while that of Gail is about Rs 30,000 crore. CLICK HERE TO READ FULL REPORT