GAIL India stock surged nearly 4 per cent in early trade after the state-owned gas utility said its board would consider buyback of shares on March 31, 2022.┬а GAIL India shares opened with a gain of 2.95 per cent at Rs 152 against the previous close of Rs 147.65 on BSE.
The stock touched an intraday high of Rs 153, rising 3.62 per cent on BSE. GAIL (India) stock is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The share has gained 15 per cent in one year and risen 17.38 per cent since the beginning of this year.
A total of 4.06 lakh shares of the firm changed hands, amounting to a turnover of Rs 6.15 crore. Market cap of the firm rose to Rs 67,338 crore on BSE. ┬а
Stocks in news: GAIL, Adani Enterprises, GR Infra, Bharti Airtel and more
On October 6 last year, the stock hit an all-time high of Rs 171.35 and a 52-week low of Rs 125.20 on December 20, 2021.
On March 31, the company will also approve financial results for the fourth quarter of the current financial year on the same day.
“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.
Share buyback refers to the repurchasing of shares by the company that issued them. A buyback occurs when the issuing company pays shareholders the market value per share and re-absorbs that portion of its ownership that was previously distributed among public and private investors.
The government owns 51.80 per cent stake in the company though it is uncertain if it will be participating in the buyback.
The firm reported a 100.72 per cent rise in net profit at Rs 3,780 crore in the December quarter against Rs 1,883 crore profit in the corresponding quarter of the previous fiscal.
Sales surged 66.92 per cent to Rs 26,145 crore in Q3 against Rs 15,663 crore in the December quarter of previous fiscal.
Operating profit excluding other income climbed 106.13 per cent to Rs 4,626.78 crore in the last quarter against Rs 2244.54 crore in Q3 of last fiscal.
