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:
- 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.
- 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 Period | From May 25, 2022, to June 7, 2022 |
| Security Name | GAIL (India) Limited |
| Issue Type | Tender Offer |
| Issue Size (Shares) | 5,69,85,463 equity shares |
| Issue Size (Amount) | Rs. 1,082.72 crores |
| Buyback Offer Size: | 1.28% |
| Buyback Price | Rs. 190 per equity share |
| Face Value of the Equity Share | Rs. 10 per equity share |
| Listing At | BSE, NSE |
| Record Date for the offer | April 22, 2022 |
| Last Date for receipt of Tender Forms | June 14, 2022 |
| Finalisation of the Buyback Acceptance from the company | June 15, 2022 |
| Last Date for settlement of the bids | June 16, 2022 |
| Last Date for Extinguishment of Shares | June 23, 2022 |
| Board Meeting for Buyback Proposal | March 31, 2022 |
| Buyback Approval Date | March 31, 2022 |
| Public Announcement of Buyback | April 4, 2022 |
| GAIL Buyback Record Date | April 22, 2022 |
| Cut-off Date to receive completed tender forms by Registrar | June 9, 2022 |
BUYBACK RATIO:
| Category | Entitlement Ratio of Buyback | Entitlement Ratio as in % |
| Reserved Category for the Small Shareholders of the company | 2 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 Shareholders | 2 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:
| Particulars | For the year ending with the amount as in Rs. Crores | ||
| 31 March 21 | 31 March 20 | 31 March 19 | |
| Total Income | 58,742.25 | 73,293.19 | 76,671.57 |
| Profit After Tax | 4,890.18 | 6,620.63 | 6,025.67 |
| Net Worth | 43,378.72 | 41,949.79 | 39,202.06 |
| Reserves and Surplus | 38,938.33 | 37,439.65 | 36,946.99 |
| PARAMETER | MARCH 21 | MARCH 20 | YoY % |
| Earnings Per Share (Rs) | 13.82 | 20.89 | -33.85 |
| CEPS (Rs) | 14.87 | 20.73 | -28.27 |
| DPS (Rs) | 5.00 | 6.40 | -21.88 |
| Book NAV/Share (Rs) | 119.77 | 109.24 | 9.64 |
| Tax Rate (%) | 26.33 | 11.17 | 135.63 |
| Core EBITDA Margin (%) | 12.61 | 12.17 | 3.61 |
| EBIT Margin (%) | 10.78 | 11.70 | -7.87 |
| Pre – Tax Margin (%) | 10.47 | 11.27 | -7.16 |
| PAT Margin (%) | 7.71 | 10.01 | -23.00 |
| Cash Profit Margin (%) | 11.50 | 12.88 | -10.75 |
| ROA (%) | 5.54 | 9.86 | -43.85 |
| ROE (%) | 8.64 | 15.26 | -43.34 |
| ROCE (%) | 10.64 | 16.31 | -34.72 |
| Asset Turnover (x) | 0.72 | 0.99 | -27.08 |
| Sales/Fixed Asset (x) | 1.14 | 1.67 | -31.57 |
| Working Capital/Sales (x) | -34.08 | -88.59 | 61.53 |
| Fixed Capital/Sales (x) | 0.87 | 0.60 | 46.14 |
| Receivable days | 26.44 | 23.09 | 14.52 |
| Inventory Days | 19.62 | 14.30 | 37.21 |
| Payable days | 34.96 | 25.03 | 39.67 |
| PER (x) | 9.81 | 3.66 | 168.03 |
| PCE (x) | 9.12 | 3.69 | 147.17 |
| Price/Book (x) | 1.13 | 0.70 | 61.72 |
| Yield (%) | 3.69 | 8.37 | -55.94 |
| EV/Net Sales (x) | 1.14 | 0.55 | 107.18 |
| EV/Core EBITDA (x) | 7.82 | 3.77 | 107.17 |
| EV/EBIT (x) | 10.56 | 4.70 | 124.84 |
| EV/CE (x) | 0.79 | 0.52 | 51.80 |
| M Cap / Sales | 1.05 | 0.48 | 120.65 |
| 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 (%) | -39.07 | 25.80 | -251.46 |
| EPS Growth (%) | -33.85 | -28.03 | -20.77 |
| Total Debt/Equity (x) | 0.14 | 0.14 | 0.37 |
| Current Ratio (x) | 0.87 | 0.93 | -7.34 |
| Quick Ratio (x) | 0.63 | 0.68 | -7.60 |
| Interest Cover (x) | 34.53 | 27.49 | 25.63 |
| Total Debt/Market cap (x) | 0.12 | 0.19 | -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 date | Rs 2,00,000 |
| The company has decided on the buyback price | Rs. 190 |
| Maximum shares for small shareholders as per the buyback price (2,00,000/190) 1,052 equity shares of the company | 1,052 equity shares of the company |
| The closing price of the stock for consideration of the profit from the buyback | Rs. 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 ratio | Amount invested in the buyback | No. of shares bought back | Buyback Profit | Profit in % |
| 33% | Rs. 1,63,796 | 347 | Rs. 11,903 | 7.27 |
| 50% | Rs. 1,63,796 | 526 | Rs. 18,042 | 11.01 |
| 75% | Rs. 1,63,796 | 789 | Rs. 27,063 | 16.52 |
| 100% | Rs. 1,63,796 | 1052 | Rs. 36,204 | 22.01 |
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 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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