GAIL board to consider buyback on January 15; share price touches 52-week high
The shares of GAIL (India), the nation's largest gas distribution firm, were up by more than 4 per cent on Tuesday. The stock touched a fresh 52-week high of Rs 143.50 after the company stated that its board is scheduled to meet on January 15, 2021, to consider the buyback of shares and interim dividend.
The Government of India (GoI), which holds a 52.1 per cent stake in the company, is likely to participate in the buyback just like it did in the case of Engineers India, RITES and KIOCL.
According to reports, GoI has asked eight state-run companies to consider share buybacks as it looks for ways of raising funds to rein in its fiscal deficit. These include companies such as Coal India, NTPC, and NMDC.
So far, the government has managed to raise Rs 28,298.26 crore from disinvestment proceeds, according to data from the Department of Investment & Public Asset Management (DIPAM).
On Tuesday, the stock of GAIL (India) closed at Rs 141.35 per share, up by 4.16 per cent or Rs 5.65 per share on BSE. The 52-week high was recorded at Rs 143.50 and the 52-week low was Rs 65.70 on BSE.