Gail Buyback 2021

GAIL (India) Ltd. is a Central Public Sector Undertaking (PSU) under the Ministry of Petroleum and Natural Gas, with the mission of accelerating and optimizing the effective and economic use of Natural Gas and its fractions for the benefit of the national economy.

GAIL, having started as a Gas Transmission Company during the late eighties, has grown organically by building a large network of Natural Gas pipelines covering over 11,000 km; two LPG Pipelines covering more than 2,000 km; six Gas Processing plants for production of LPG and other liquid hydrocarbons, with a combined production capacity of around 1.3 MMTPA, and a gas based integrated petrochemical plant of capacity 810,000 TPA. The Company also has 70% equity share in Brahmaputra Cracker and Polymer Limited (BCPL) which has set up 280,000 TPA polymer plant in Assam. Further, GAIL is a co-promoter of ONGC Petro-additions Limited (OPaL) which is implementing a green field petrochemical complex of 1.4 MMTPA polymer capacity at Dahej in the State of Gujarat. The company has integrated upstream into the business of Exploration & Production with participating interests in 11 E&P Blocks, including 2 blocks in Myanmar. GAIL has also integrated downstream into the high growth retail City Gas Distribution business both in India and abroad.

Buy Back Offer Deal:

Buyback Type: Tender Offer
Buyback Record Date: Jan 28 2021
Buyback Opening Date: Feb 25 2021
Buyback Closing Date: Mar 10 2021
Buyback Offer Amount: ₹ 1046 Crores
Date of Board Meeting approving the proposal: Jan 15 2021
Date of Public Announcement: Jan 15 2021
Buyback Offer Size: 2.50%
Buyback Number of Shares: 6,97,56,641
Price Type: Tender Offer
FV: 10
Buyback Price: ₹ 150 Per Equity Share

Details of Buyback:

Board meeting held today has approved buyback of not exceeding 6,97,56,641 (Six Crores Ninety Seven Lakhs Fifty Six Thousand Six Hundred Forty one) fully paid-up equity shares of face value of Rs. 10 each (representing 1.55 % of the total number of fully paid-up equity shares in the paid-up share capital of the Company) at a price of Rs. 150 (Rupees one Hundred Fifty Only) per equity share (the "Buy Back Offer Price") payable in cash for an aggregate consideration not exceeding Rs. 1046.35 crores (Rupees One Thousand Forty Six crores Thirty Five Lakhs only) (the "Buyback Offer Size") representing 2.50 % and 2.26 % of the aggregate of the fully paid-up equity share capital and free reserves as per the audited standalone and consolidated financial statements of the Company, respectively, for the financial year ended March 31, 202.

Salient financial parameters:

Particulars (Crores) Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20
Sales 60,557 52,053 48,552 54,496 76,190 72,508
Expenses 54,923 47,524 42,537 46,701 66,283 63,495
Operating Profit 5,635 4,529 6,015 7,796 9,907 9,013
OPM % 9% 9% 12% 14% 13% 12%
Other Income 942 737 1,218 954 1,751 3,805
Interest 652 822 509 295 159 309
Depreciation 1,433 1,496 1,541 1,527 1,667 2,080
Profit before tax 4,492 2,949 5,183 6,928 9,831 10,429
Tax % 32% 37% 35% 31% 33% 9%
Net Profit 3,160 1,869 3,368 4,799 6,546 9,422
EPS in Rs 7.01 4.14 7.47 10.64 14.51 20.89
Dividend Payout % 24% 37% 56% 43% 25% 31%

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Gail Buyback 2021 in demat or physical form as on the record date [28.01.2021 ]. 2. Once you have shares in demat, you can participate in the buyback process which is opening from [25.02.2021 to 10.03.2021] by selling your shares through your broker on NSE or BSE. 3. Then on [19.03.2021], the payment will be given to you for accepted shares and unaccepted shares will be returned to your demat account.

Profit from the buyback on the bases of acceptance Ratio:

Buy 1333 Shares at CMP of Rs.140 [2,00,000/150=1333)
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 1,86,666 1,86,666 1,86,666 1,86,666
No. of Shares buyback 439 666 999 1333
BuyBack Profit 4390 6660 9990 13330
Profit 2.3% 3.5% 5.3% 7.14%


Review and Recommendation of Gail Buyback 2021 by IZ team is: 6/10 [Current ER = 11%]  


    Today I have sold the remaining shares @149.95 for instant cash within 30 minutes and I got the credit. (ICICI DIRECT)

    umeshji where can we check our eligibility as a shareholder as on record date? did they announced on mcs(registrar) web site?

    What % of shares are likely to be accepted in retail category? GAIL is up today. Is it better to sell now? Or wait for buyback?


    *GAIL LTD*

    Tender Opens On: 25-FEB-2021
    Tender Closes On: 10-MAR-2021
    Sattlement Date : 19-MAR-2021
    Retail Entitlment 9.68%

    Forward message

    Message Regarding Engineers India Ltd buyback
    Dear Customer you had tendered 2500 shares in BUYBACK of ENGINERSIN at the offer price of Rs.84 out of which 1596 quantity has accepted by Registrar at the Exit Price of Rs.84 .

      I got the contract not from zerodha on the acceptance, but the remaining shares not yet credited or I haven’t received any payment for the accepted shares..

      Anyone else got the payment

        My money is still not credited in account

        I am using sbi smart and my account is in sbi

        Will the amount be credited to my trading account or will be credited to my normal saving account

        I am seeing message many have got the amount credited in their account

    How much time after record date do the buyback window get open.
    when will GAIL buyback window open ?

      Status At SEBI
      Sl.No.Company Name Merchant Banker PA Date DOD received
      Offer Size
      (Rs Cr)
      Last communication
      Processing status

      18/01/2021 25/01/2021 1046 25/01/2021 Reply from MB received on 05/02/2021.
      Under Process.

      Shubham it better u wait for the buyback otherwise if the price goes more up then u can try to reduce ur losses…I have bough myself @ 134….

    Hi Guys,
    New to this & 1st Buyback. I have just 22 Shares @117 of GAIL. What should I do? Also havent they declared any divident this time?

      Tender all 22
      Whatever gets accepted is good
      Rest sell or keep it for long term
      It will take quite some time to come again at 150

        Sorry Just now Saw corrction is mine are 220 Shares@117. I use Zerodha & will be participating in Buyback 1st Time.
        1. What will be the best time to tender between this large timepriod given of 25th Feb – 10th March 2021.
        2. Does tendering early or late effects Acceptance Ratio.
        3. Since I had 220 Shares on the record date & can tender only these, ifthe price goes above 150, will it be benefical to sell directly.
        4. I am actually planning to keep GAIL for longer time frame as Investment so does it benefit if price comes down, I buy more as Investment after tendering.
        5. What as per your experience usually buy baack ratio in companies like GAIL.

    @IZ team: Good lots of information, especially the rating by IZ, and also expected ER in buyback. It would be nice if you could include, the latest available shareholding pattern, likely AR is even better! Also,
    actual AR for retail, after the issue is completed. Thanks in advance!

    I have purchased 1333 @ Rs 133 for buyback purpose.
    Can I sell after record date or hold. Kindly advise

    Purchaswd GAIL on 25 jan and showing delivery 29 jan in icicidirect. Willit be get considered for BUYBACK?

    Buyback of NALCO shares is likely to be considered in the meeting of the company to be held on January 27th. Please be prepared. Thank you.

    In respect of UNIQUOTERS shares buyback, only 46 shares are accepted out of the tendered 500 shares. Thus the AR is even below 10%. The buyback price is Rs.400/-. It will be a Herculean task to dispose the unaccepted shares. Have to face the music. Any members in the forum submitted the shares for buyback?

        Mayur Uniqoters is still profitable. You can sell remaining shares at 300. The price was less than 280 even before the record date.

      Yes I have participated in Mayur Uniquoter buyback from two accounts…the AR is around 8-9% .Though my entry price is around 260-270. So as per CMP it is in a comfortable zone for me to exit…which I will do within this week…my target price is around 310-312…

        Gaurav ji and Parth G ji, thank you very much for your kind response. I am also planning to dispose the unaccepted shares left after buyback @305/- as my cost price is around Rs.275/-. Yes, it is a profitable one. I agree with you. Thank you very much once again.

          The closing price of MAYUR UNIQUOTERS is Rs.293.70 . I request the senior members to analyse the reasonable possibility of reaching the price to Rs.310/- along with the time frame. Thank you.

          Exit Kar do Sivaji

          Agar market tuti jiske ki chances hai kyoki it’s quite expensive

          Then this will crack like hell
          So exit

            Aashish ji, thank you very much for your kind response. 50% of the unaccepted shares were sold at around Rs295/-. Monday i will watch the situation and act accordingly. Thank you once again.

    Attn : Mr Anurag
    EIL Buy back
    In case of any queries, you may contact the Company (details provided above) or the Manager to the Buyback or Registrar to the Buyback at the details mentioned below:


    6th Floor, IDBI Tower, WTC Complex, Cuffe Parade,
    Mumbai – 400 005, Maharashtra, India
    Contact person: Mr. Sumit Singh
    Tel: +91 22 2217 1700
    Fax: 91 22 2215 1787
    SEBI Registration No.: INM000010866
    Validity Period: Permanent
    CIN: U65990MH1993GOI075578

    205-208, Anarkali Complex, Jhandewalan Extension,
    New Delhi – 110055
    Tel No: +91-11-4254 1234 / 2354
    Fax: +91-11-2355 2001
    Contact Person: Mr. Virender Sharma
    SEBI Registration Number : INR000002532
    Validity Period: Permanent
    CIN: U74210DL1991PLC042569

    Good evening sir.
    I have not got any mail regarding buyback /tender form of engineers India till now. Please help me by sending a link from there I can download the form.
    Thanks in advance sir

    Hi….Why still a page on EIL is not yet created.

    Can you moderators or Umrah Saab take the needful action.

    Thank you in advance

    In my opinion, any purchase price more than Rs. 137.5 may not yield reasonable profit. Dividend is also considered while arriving at the above price. The AR may be hopefully around 50% to 60%. The selling rate of unaccepted shares after buyback feared to be a very very low one and we cannot really enjoy the fruits of buyback. Listen to all and take your own decision. Thank you.

      50 to 60% Wow am not sure how you arrived at that number. Seems more like a wishlist than the result of a analysis. Even Investorzone is assuming 11% Entitlement and in best case Acceptance would be about 22%. Not sure if you have any insight on Gas sector which is unknown to public.

        Sir, I wholeheartedly welcome your response. As govt.’s share is around 51.5%, it may not participate in buyback so as to maintain the minimum obligatory share of 50%. As the buyback price is not that much attractive wrt the market price at the time of my posting, I thought that many retail investors may not participate in buyback due to the fear of possible selling of un accepted shares at around Rs.125/- to Rs. 130/-. I may be wrong in assessing. Thank you very much for your kind words.

          It is the government’s requirement to have the buyback. So, government will tender their full entitlement. They did that in NMDC where the buyback price was below market price.

          Also, since retail entitlement is much higher than their holding ratio, the government’s shareholding percentage will go up after the buyback.

          Buyback is proportional mechanism. As a matter of fact, Govt. holding would increase if they do not participate. In case the Govt participate which they have already indicated that they will participate then the percentage holding does not change much.

    Strategies in Gail Buyback:

    Strategy 1:

    Buy 1333 shares at 135-136 and sell shares on 27.01.2021, one day before Record date.

    Buy again before the start of buyback as per exact ER and tender shares.

    Strategy 2:

    Buy 1333 shares at 135-136 and tender all shares only in Buyback.

      But if we sell one day before the record date whether we will be eligible for buy back as Zerodha debits the shares sold on the same day.

      In strategy 1:

      “Buy again before the start of buyback as per exact ER and tender shares.”

      —- How can we participate in the buy-back, if we sell shares before the record date ?

        I said sell one day before the record date. If you sell one day prior to Record date, then shares will be debited in T+2 days. But always check with brokers, some broker remove the shares in the same day, so in that case you will not be eligible to participate in buyback.

      Corrected now to 11%.

      Total Shares reserved for Retail investors = 10463496
      Total shares between 1-5000 (as on 31.03.2020) = 95386643
      ER = 11%

    Is it not worth to participate in buy back as the present rate is Rs.139.2 and after taking into consideration the interim divident of Rs.2.50 per share, the cost price will be Rs.136.70 (approximately) and the buy back price is Rs.150 ? Also it appears with the buy back price announced, many investors are disappointed as the share price has fallen upto 7% compared to the peak level on 15.01.21. So can we assume that there will be lacklustre response to the buy back, and those who participate will have a fair chance of higher AR?
    Seniors may please resond. Thank you.

      AR may hopefully be around 50% to 60%. The unaccepted shares after buyback are to be sold at least price of Rs 130/-. Other wise, the fruits of buyback cannot be enjoyed. Analyse and take decision accordingly. Thank you.

    As record date is near and market is falling best to wait till around 135-137 levels and take a position in the buyback.

      Yes you are correct Sir. I presume that the stock price has fallen to Rs.136-139 on 15.01.2021 because Nifty has lost 1.11%. But from Monday i.e 18.01.2021 investors may show buying interest in the stock to participate in the buy back and the price will rise. Since record date has already been announced at the most it may take one and half month for the buy back to open. So waiting time is less as also the profit percentage margin.

    When there were talks about buyback the share was trading around 95…now it is 142…almost 50% movement already!

      It was speculated that the buyback price will be around 125

      Now it’s already at 142

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