GAIL (India) has received approval from board of directors to buyback about 5.7 crore shares for Rs 1,083 crore as it looks to use its healthy balance sheet to reward shareholders for the second time in as many years. The company had in 2020-21 spent Rs 1,046.35 crore on a similar share buyback. Buying back shares is considered a tax-efficient way of rewarding shareholders. The government owns a 51.80 per cent stake in the company and is likely to participate in the buyback. In the 2020-21 buyback, the government had received Rs 747 crore.
The share buyback, or share repurchase, is when a company buys back its own shares from investors or stakeholders. It can be seen as an alternative, tax-efficient way to return money to shareholders. The board of directors at its meeting held on March 31, 2022 has approved the same.
GAIL (India) is India’s leading natural gas company with diversified interests across the natural gas value chain of trading, transmission, LPG production & transmission, LNG regasification, petrochemicals, city gas, E&P, etc.
