GAIL India stock jumps 4% on share buyback plan
GAIL India shares jumped nearly 4% in early trading after the gas utility said its board would consider a share buyback on March 31, 2022. GAIL India shares opened with a gain of 2.95% to Rs 152 from the previous close. of Rs 147.65 on BSE.
The stock hit an intraday high of Rs 153, up 3.62% on BSE. Shares of GAIL (India) are trading above the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The stock has gained 15% in one year and is up 17.38% since the start of this year.
A total of 4.06 lakh shares of the company changed hands, representing a turnover of Rs 6.15 crore. The company’s market cap rose to Rs 67,338 crore on BSE.
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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 the financial results for the fourth quarter of the current fiscal year on the same day.
“In accordance with Regulation 29 of the Securities and Exchange Board of India (Registration and Disclosure Requirements) Regulations 2015, as amended, notice is hereby given that the meeting of the Board of Directors of the Company will be held on Thursday, March 31, 2022, to consider, among other things, the repurchase of the company’s fully paid shares,” the company said in a regulatory filing.
Share repurchase refers to the repurchase of shares by the company that issued them. A buyout occurs when the issuing company pays shareholders the market value per share and reabsorbs the portion of its ownership that was previously split between public and private investors.
The government owns 51.80% of the capital of the company, although it is uncertain whether it will participate in the takeover.
The company announced a 100.72% increase in its net profit to Rs 3,780 crore in the December quarter from a profit of Rs 1,883 crore in the corresponding quarter of the previous fiscal year.
Sales jumped 66.92% to Rs 26,145 crore in the third quarter from Rs 15,663 crore in the December quarter last year.
Operating profit excluding other income soared 106.13% to Rs 4,626.78 crore last quarter from Rs 2,244.54 crore in the third quarter of last fiscal year.