New Delhi: State-owned GAIL Ltd today, March 25, informed the stock exchanges that its board will meet on 31 March to consider buyback of shares. On Friday, GAIL shares closed 0.41% higher at ₹147.70 apiece on NSE.
“Pursuant to Regulation 29 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, notice is hereby given that the meeting of board of directors of the company will be held on Thursday, 31st March, 2022, to inter alia consider buyback of the fully paid-up equity shares of the company, ” the company said in a regulatory filing.
“In terms of company’s code of conduct for regulating, monitoring and reporting of trading by employees and other connected persons of the company framed pursuant to the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, as amended, the trading window for dealing in securities shall remain closed from Saturday, 26th March, 2022 till 48 hours after the date of Board Meeting wherein the financial results for the quarter and financial year ended 31.03.2022 would be considered and approved,” it added.
Buying back shares is considered a tax efficient way of rewarding shareholders. The government owns 51.80 per cent stake in the company though it is uncertain if it will be participating in the buyback.
GAIL had already declared an interim dividend of Rs 4 per share to its shareholders in December 2021. The two interim dividends total Rs 9 per equity share, which is equivalent to 90 percent on the paid-up equity share capital. The total dividend payout is Rs 3,996.35 crore.