GAIL (INDIA) LIMITED BUYBACK DETAIL

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GAIL (India) Limited is a government-owned Public Sector Undertaking company. It is engaged in the business of natural gas production, trading, and transmission. GAIL (India) Limited also does the exploration of natural gas along with petrochemicals. It carries out its business venture in LPG, Liquid Hydrocarbons, LNG re-gasification, etc. Checkout Gail (India) Limited buyback 2022 price, size, buyback acceptance ratio and more details.

GAIL (India) Limited owns and operates a huge network of Natural Gas pipelines. It is around 13,340 km. GAIL (India) Limited was established in 1984. It is the leading natural gas company in the country. It is also the biggest company engaged in the natural gas value chain business.

GAIL (India) Limited operates under the Ministry of Petroleum and Natural Gas. The company motto is to “optimize the effective and economic use of Natural Gas and its fractions for the benefit of the national economy.”

It also operates and owns two LPG pipelines of 2000 km. It also holds 6 gas processing and filtration plants. The combined production capacity of GAIL is 1.3 MMTPA. GAIL (India) Limited also has a huge production capacity for its gas-based integrated petrochemical plant. It is 810,000 TPA.

OBJECTIVE OF THE BUYBACK OFFER:

The company stated that the necessity of the Buyback Issue aims at the following:

  1. The company’s policy is to distribute its surplus funds in favor of the shareholders and increase and improve the overall Return of the shareholders.
  2. To improve their financial ratios and other operational ratios such as Earnings per share (EPS), Return on Equity (ROE), Return on Capital Employed (RoCE), and Return on assets (ROA).

GAIL (INDIA) LIMITED BUYBACK DETAIL:

The company stated that the buyback offer of the equity shares would be a Tender Offer. It is as per the Buyback Regulations. The regulations have been stated by the company and the guidelines of SEBI. It also stated that the reservation of the small shareholders would be defined. It has been defined as per the Buy-back Regulations.

The company board recently approved the proposal of a buyback of 5,69,85,463 equity shares of the company. The buyback price is Rs. 140 for every equity share. The company stated that its buyback offer would be around 1.28 % of its total fully paid-up equity capital base. Check Day by Day IPO Subscription Details (Live Status)

Issue PeriodFrom May 25, 2022, to June 7, 2022
Security NameGAIL (India) Limited
Issue TypeTender Offer
Issue Size (Shares)5,69,85,463 equity shares
Issue Size (Amount)Rs. 1,082.72 crores
Buyback Offer Size:1.28%
Buyback PriceRs. 190 per equity share
Face Value of the Equity ShareRs. 10 per equity share
Listing AtBSE, NSE
Record Date for the offerApril 22, 2022
Last Date for receipt of Tender FormsJune 14, 2022
Finalisation of the Buyback Acceptance from the companyJune 15, 2022
Last Date for settlement of the bidsJune 16, 2022
Last Date for Extinguishment of SharesJune 23, 2022
Board Meeting for Buyback ProposalMarch 31, 2022
Buyback Approval DateMarch 31, 2022
Public Announcement of BuybackApril 4, 2022
GAIL Buyback Record DateApril 22, 2022
Cut-off Date to receive completed tender forms by RegistrarJune 9, 2022

BUYBACK RATIO:

CategoryEntitlement Ratio of BuybackEntitlement Ratio as in %
Reserved Category for the Small Shareholders of the company2 Equity Shares out of every 25 equity shares held as of the record date for the buyback offer.8%
General Category that is been eligible for all other Shareholders2 Equity Shares out of every 179 equity shares held as of the record date for the buyback offer.1.12%

FINANCIAL TRENDS OF THE COMPANY:

ParticularsFor the year ending with the amount as in Rs. Crores
 31 March 2131 March 2031 March 19
Total Income58,742.2573,293.1976,671.57
Profit After Tax4,890.186,620.636,025.67
Net Worth43,378.7241,949.7939,202.06
Reserves and Surplus38,938.3337,439.6536,946.99
PARAMETERMARCH 21MARCH 20YoY %
   Earnings Per Share (Rs)13.8220.89-33.85
   CEPS (Rs)14.8720.73-28.27
   DPS (Rs)5.006.40-21.88
   Book NAV/Share (Rs)119.77109.249.64
   Tax Rate (%)26.3311.17135.63
   Core EBITDA Margin (%)12.6112.173.61
   EBIT Margin (%)10.7811.70-7.87
   Pre – Tax Margin (%)10.4711.27-7.16
   PAT Margin (%)7.7110.01-23.00
   Cash Profit Margin (%)11.5012.88-10.75
   ROA (%)5.549.86-43.85
   ROE (%)8.6415.26-43.34
   ROCE (%)10.6416.31-34.72
   Asset Turnover (x)0.720.99-27.08
   Sales/Fixed Asset (x)1.141.67-31.57
   Working Capital/Sales (x)-34.08-88.5961.53
   Fixed Capital/Sales (x)0.870.6046.14
   Receivable days26.4423.0914.52
   Inventory Days19.6214.3037.21
   Payable days34.9625.0339.67
   PER (x)9.813.66168.03
   PCE (x)9.123.69147.17
   Price/Book (x)1.130.7061.72
   Yield (%)3.698.37-55.94
   EV/Net Sales (x)1.140.55107.18
   EV/Core EBITDA (x)7.823.77107.17
   EV/EBIT (x)10.564.70124.84
   EV/CE (x)0.790.5251.80
   M Cap / Sales1.050.48120.65
   Net Sales Growth (%)-20.89-4.82-333.33
   Core EBITDA Growth (%)-20.88-2.85-632.08
   EBIT Growth (%)-27.10-7.86-244.98
   PAT Growth (%)-39.0725.80-251.46
   EPS Growth (%)-33.85-28.03-20.77
   Total Debt/Equity (x)0.140.140.37
   Current Ratio (x)0.870.93-7.34
   Quick Ratio (x)0.630.68-7.60
   Interest Cover (x)34.5327.4925.63
   Total Debt/Market cap (x)0.120.19-37.96

WORKING CALCULATION OF PROFIT AS PER THE ACCEPTANCE RATIO:

The maximum market value of a shareholder that is eligible for a buyback offer as on the record dateRs 2,00,000
The company has decided on the buyback priceRs. 190
Maximum shares for small shareholders as per the buyback price (2,00,000/190) 1,052 equity shares of the company1,052 equity shares of the company
The closing price of the stock for consideration of the profit from the buybackRs. 155.00
Maximum amount invested in buyback as per the closing price above considered (126.75 x 1,052 shares)Rs. 1,63,796

The profit that can be from Filatex Buyback as per the Acceptance Ratio: 

Acceptance ratioAmount invested in the buybackNo. of shares bought backBuyback ProfitProfit in %
33%Rs. 1,63,796347Rs. 11,9037.27
50%Rs. 1,63,796526Rs. 18,04211.01
75%Rs. 1,63,796789Rs. 27,06316.52
100%Rs. 1,63,7961052Rs. 36,20422.01

MARKET REACTION ON BUYBACK:

Currently, the stock is trading at Rs. 147.80. It registered a negative closing with 1.66%. The market has been in a correction mode. It is due to the tension created by the rise in inflation. The other factors are the rise in the RRP and CRR by the RBI. Also, staggering financials amidst the Russia- Ukraine War. The stock has gone through a significant correction from the top.

The GAIL stocks has shown significant strength even in the correction mode of the market. It hasn’t fallen to a great level and is currently trailing in a consolidation zone. Earlier, the stock registered a higher price of Rs. 171.35 on NSE. The average price calculated on a year-on-year basis is Rs. 132.46. The stock is currently trailing at a discount from its Buyback Offer Price. The buyback offer at full acceptance is at a premium of Rs. 42.20. It is nearly 28% of the Buyback Price offered by the company.

COMPANY CONTACT INFORMATION:

GAIL (India) Limited

GAIL Bhawan,

16 Bhikaji Cama Place,

R K Puram, New Delhi – 110066

Phone: 011-26172580, 261829

Email: shareholders@gail.co.in

Website: https://www.gailonline.com/

REGISTRAR OF GAIL BUYBACK 2022:

MCS Share Transfer Agent Limited

F-65, Okhla Industrial Area Phase 1,

New Delhi 110020

Phone: +91 1141406149, 011 41406148, 

Fax: +91 1141709881, 011 41709881

Email: admin@mcsregistrars.com

Website: www.mcsregistrars.com

MANAGER OF GAIL BUYBACK 2022:  

IDBI Capital Markets & Securities Limited

6th Floor, IDBI Tower,

WTC Complex, Cuffe Parade,

Mumbai 400005

Phone: +91 2222171953

Email: gail.buyback2022@idbicapital.com

Website: www.idbicapital.com

REGISTERED BROKER

IDBI Capital Markets & Securities Limited

  •  Email: charushila.parkar@idbicapital.com
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