Gail India share price gains 5% on share buyback approval

Gail India share price gained 5 percent in the early trade on February 18 after the company approved a share buyback plan.

The company is going to open its buyback programme on February 25 for up to 6,97,56,641 fully paid-up equity shares of face value Rs 10 each, representing 1.55 percent of the number of equity shares in the issued, subscribed and paid-up equity share capital of the company.

The share buyback will close on March 10. The company will buy back shares from all the existing shareholders/ beneficial owners of equity shares of the company as on the record date—January 28, 2021—on a proportionate basis through the "tender offer" process at a price of Rs 150 per equity share for an aggregate consideration not exceeding Rs 1,046.35 crore, company said in the release.

The funds for the buyback will be met out of internally-generated cash resources of the company, it added.

The share touched its 52-week high Rs 146.20 and 52-week low of Rs 65.70 on January 15, 2021 and March 19, 2020, respectively. It is trading 3.83 percent below its 52-week high and 114 percent above its 52-week low.