Shares of GAIL India today rose by nearly 4 per cent to touch its 52-week high after the company approved issuance of one bonus share for every three held and an interim dividend of 85 per cent to shore up government revenues.
The stock, after making a positive opening, further gained 3.78 per cent to Rs 493.80 -- its one-year high -- on BSE.
On NSE, it jumped 3.76 per cent to touch a 52-week high of Rs 493.80.
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The board of directors of the company "recommended the issuance of one bonus share of Rs 10 for existing three equity shares of Rs 10 each fully paid up, subject to the shareholders approval," GAIL said in a regulatory filing on Wednesday.
Also, it approved payment of interim dividend for the financial year 2016-17 at the rate of 85 per cent (Rs 8.5 per equity share) on the paid-up equity share capital of the company.
The government holds 56.57 per cent of shares in GAIL and the interim dividend would give it over Rs 600 crore. Besides, it will get dividend tax.
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