GAIL Buyback 2022 Record Date, Buyback Price, Entitlement Ratio

GAIL Buyback 2022 description – GAIL (India) Limited is a natural gas company that is engaged in the business of production, transmission, trading and exploration of natural gas, petrochemicals, LPG, LNG re-gasification, Liquid Hydrocarbons, etc. The company owns and operates a network of around 13,340 km of natural gas pipelines spread across the country. GAIL (India) Limited was incorporated in 1984.

It owns over 11,500 km of natural gas pipelines, over 2,300 km of LPG pipelines, six LPG gas-processing units and a petrochemicals facility. It also has a joint-venture interest in Petronet LNG Ltd, Ratnagiri Gas and Power Pvt Ltd, and in the CGD business in several cities. GAIL has wholly owned subsidiaries in Singapore and the US for expanding its presence outside India in the segments of LNG, petrochemical trading and shale gas assets.

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GAIL Share Buyback 2022 Details

Buyback Dates	25 May – 7 June 2022
GAIL Buyback Price	INR 190 per share
Buyback Offer Size (Shares)	5,69,85,463 shares
Buyback offer as % of total shares	1.28%
Buyback Offer Size (Amount)	INR 1082.72 crore
Offer Type	Tender
Promoter Participation	Yes
Face Value	INR 10 per share
Listing At	BSE, NSE

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GAIL Buyback Dates (Timeline)

Board Meeting for Buyback Proposal	31 March 2022
Buyback Approval Date	31 March 2022
Public Announcement of Buyback	4 April 2022
GAIL Buyback Record Date	22 April 2022
Buyback Opening Date	25 May 2022
Buyback Closing Date	7 June 2022
Cut-off Date to receive completed tender forms by Registrar	9 June 2022
Verification Date by the Registrar	14 June 2022
Return of unaccepted shares by Registrar	15 June 2022
Extinguishment of accepted shares	23 June 2022

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GAIL Share Buyback 2022 Documents

Offer Letter
Draft Letter of Offer
Public Announcement
Upcoming Share Buyback

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GAIL Share Buyback Entitlement Ratio

Shareholder Category	Entitlement Ratio	Entitlement Ratio (in %)
Small Shareholders (less than INR2 Lakh on record date)	2/25	8%
General category (for all other Eligible Shareholders)	2/179	1.12%

Small Shareholder is defined as shareholder who holds shares worth less than INR2,00,000 as on record date.

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GAIL India’s Financial Performance

	FY2019	FY2020	FY2021
Total Income	76,190	72,518	57,372
Total Expenses	66,252	63,495	50,127
Net income	6,546	9,422	6,136

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Working Calculation of Amount Invested in Buyback

Maximum market value of a share holder as on record date	INR2,00,000
Buyback price	INR 190
Maximum shares for small shareholder (2,00,000/190)	1,052 shares
Closing price of share as on 31 March 2022	INR 155.70
Maximum amount invested in buyback (155.70 x 1,052 shares)	INR 1,63,796

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Profit from GAIL Buyback by Acceptance Ratio

Acceptance ratio	Amount invested in buyback	No. of shares bought back	Buyback Profit	Profit in %
33%	1,63,796	347	11,903	7.27
50%	1,63,796	526	18,042	11.01
75%	1,63,796	789	27,063	16.52

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Registrar of GAIL Stock Buyback 2022

MCS Share Transfer Agent Limited
F-65, Okhla Industrial Area Phase 1,
New Delhi 110020
Phone: +91 1141406149, 011 41406148,  
Fax: +91 1141709881, 011 41709881
Email: [email protected]
Website: www.mcsregistrars.com

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Manager of GAIL Share Buyback 2022

IDBI Capital Markets & Securities Limited
6th Floor, IDBI Tower,
WTC Complex, Cuffe Parade,
Mumbai 400005
Phone: +91 2222171953
Email: [email protected]
Website: www.idbicapital.com

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Necessity of the Buyback

• The buy-back gives an option to the equity shareholders to either participate in the buy-back and receive cash in lieu of Equity Shares accepted under the buy-back.
• The buy-back helps to return surplus cash to its shareholders, in proportion to their shareholding, thereby, enhancing the overall returns to shareholders.
• The buy-back would help in improving Earning per share (EPS), Return on asset (ROA) and Return on equity (ROE) ratios of the Company.
• The buy-back, which is being implemented through the Tender Offer route as prescribed under the Buyback Regulations, would involve a reservation for small shareholders as defined in the Buy-back Regulations.

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Process to Participate in GAIL Share Buyback

All eligible Shareholders of the Company who own Physical Shares or Demat Shares on the Record Date may participate in the buyback offer through their Stock Broker. The eligible shareholder who holds the shares in Demat form must notify their broker of the details of the Equity shares that they wish to tender in the Buyback Offer.

The shareholder must transfer the tendered shares to the clearing corporation’s Special account. In turn, the broker would place a buyback order on the stock exchange.

The eligible shareholder who owns the shares in physical form must present their broker with the original share certificates and supporting documents. After document verification is complete, the broker places an order on the stock exchange and submits the original share certificate and TRS (Transaction Registration Slip) to the registrar.

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Frequently Asked Questions