GAIL shines on bond issue worth Rs 750 crore receiving over-whelming response

GAIL (India) is currently trading at Rs. 325.05, up by 4.10 points or 1.28% from its previous closing of Rs. 320.95 on the BSE.

The scrip opened at Rs. 324.00 and has touched a high and low of Rs. 326.00 and Rs. 322.50 respectively. So far 11301 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 476.50 on 25-Jul-2011 and a 52 week low of Rs. 303.10 on 18-May-2012.

Last one week high and low of the scrip stood at Rs. 344.90 and Rs. 314.30 respectively. The current market cap of the company is Rs. 41231.86 crore.

The promoters holding in the company stood at 57.34% while Institutions and Non-Institutions held 38.43% and 3.40% respectively. 

GAIL India’s bond issue worth Rs 750 crore has received an over-whelming response from the market and got oversubscribed by five times. The company has launched a bond issue of Rs 500 crore with a green shoe option of Rs 250 crore. The bond issue, aggregating Rs 750 crore, has been mobilised at a cutoff rate of 9.14% per annum, which is the lowest rate achieved in recent times.

The bonds have been issued to partly meet its capital expenditure plan comprising expansion of various projects and will be repaid in five to eight years. The issue has a call option at the end of the fifth year.

GAIL posted a fall of 38.28% in its net profit at Rs 483.34 crore for the quarter ended March 31, 2012 as compared to Rs 783.07 crore for the same quarter in the previous year. However, total income increased by 19.60% at Rs 10718.28 crore for quarter under review as compared to Rs 8961.41 crore for the quarter ended March 31, 2011.