Gail Buyback 2022

(i) GAIL (India) Limited is India’s leading natural gas company with diversified interests across the natural gas value chain of trading, transmission, LPG production & transmission, LNG re-gasification, petrochemicals, city gas, E&P, etc. It owns and operates a network of around 13,340 km of natural gas pipelines spread across the length and breadth of country. It is also working concurrently on execution of multiple pipeline projects to further enhance the spread.

(ii) 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.

(iii) 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.

(iv) 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: Apr 22 2022
Buyback Opening Date: May 25 2022
Buyback Closing Date: Jun 07 2022
Buyback Offer Amount: ₹ 1082 Crores
Date of Board Meeting approving the proposal: Mar 31 2022
Date of Public Announcement: Mar 31 2022
Buyback Offer Size: 1.28%
Buyback Number of Shares: 5,69,85,463 
Price Type: Tender offer
FV: 10
Buyback Price: ₹ 190 Per Equity Share

Details of Buyback:

Gail Board has approved the buyback of  5,69,85,463  fully paid-up equity shares of face value of Rs, 10 each  at a price of Rs. 190  per equity share (the "Buy Back Offer Price") payable in cash for an aggregate consideration not exceeding     Rs. 1082 Crores (the "Buyback Offer Size") representing 2.50% and 2.22% 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, 2021  on a proportionate basis through a Tender Offer route.

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%
Screener.in

How to Participate in buyback?

1. Firstly, to be eligible for the buyback the investor should have shares of Gail Buyback 2022 in demat or physical form as on the record date [22.04.2022 ]. 2. Once you have shares in demat, you can participate in the buyback process which is opening from [25.05.2022 to 07.06.2022] by selling your shares through your broker on NSE or BSE. 3. Then on [16.06.2022], 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 1052 Shares at CMP of Rs.155
Acceptance Ratio 33% 50% 75% 100%
Amount Invested in Buyback 163157 163157 163157 163157
No. of Shares buyback 347 526 789 1052
BuyBack Profit 12145 18410 27615 36820
Profit 7.44% 11.2% 17% 22.5%
 

Recommendation:

Review and Recommendation of Gail Buyback 2022 from our IZ team is: 5/10 1-5: Fair 5-7: Good 7-10: Excellent. [Current Retail Entitlement is 5.31%]

52 Comments

    🔹 *GAIL BUYBACK SCHEDULE ANNOUNCED* 👍

    *Buyback Window Opens : 25 May*
    *Buyback Window Closes : 07 June*

    *Buyback Settlement Date : 16 June*

    *Retail Entitlement Ratio : 80 Shares Against 1,000 Shares (8%)*

    *Expected Retail Acceptance Ratio : 225 Shares against 1,000 Shares (22%)*

    Reply

    ER 5% . 2 shares for 25 Shares held in Retail /Small Share holder

    And

    ER 1.12% . 2 shares for 179 Shares held in General Category

    Reply

      i had talked to Gail official. Buy back Tender still not opened, and will be opened in a week maximum. i will post in group as soon as announced. i have large portfolio in 10 various accounts to submit.

      Reply

        Thanks Mr Mahesh. Record date is April 22nd. Legally how long they can take to announce/implement the scheme? Investors who would have sold after April 22nd – how then can participate?

        Reply

        You will get 10 days to repurchase and submit the same after declaration of dates.till that 10 days opening is not declared. Wait

        Reply

    *GAIL BUYBACK UPDATE*

    ✓ Size (in CR.) – Rs.1,083/- approx
    ✓ Offer Price – Rs. 190/- per share
    ✓Record date – 22/04/2022
    *Entitlement* in retail category *around 8%*
    *Acceptance Ratio* in retail category will be *around 26%* as per *current scenario* , it *may vary* depending on factors like *share price moment* .
    *_Kindly hedge your position accordingly_*

    Forwarded News on Watsapp

    Reply

      thank u umeshji for information about gail..

      i want to know hw much qty is eligible in retail category for gail buyback as i m holding 1150 and 1200 shares in two different account….

      Reply

    Sarda Energy would be coming up with buyback. Experts kindly suggest about this company,

    Reply

      Sarda Energy & Minerals Limited Buyback Particulars:

      Buyback size: upto 08,11,108 shares
      Buyback price : Rs. 1500/-
      Buyback amount: Rs.121.67 Crores
      Mode : Through Tender Offer
      Record date : May 6, 2022
      CMP: Around Rs.1310/-
      Happy investing to all of you. Thank you.

      Reply

    DEAR UMESH JI /SRK JI
    I HAVE PURCHASED 1200 SHARES OF GAIL IN 5 ACCOUNTS EACH INSTEAD OF 1056 SHARES NOW CURRENT PRICE HAS CROSSED 165 MARK , 25 SHARES TILL 170 MARK OR I HAVE TO SELL 50 SHARES TILL 173.9. MY CALCULATION IS CORRECT OR NOT? PLS GUIDE ME

    Reply

      Sir,
      To be on a more safer side, better to sell 100 shares in each account as the market price may touch Rs.1800/- also. Nothing can be ruled out. It is upto you to decide n take a decision in this regard. Thank you n all the best.

      Reply

    For Filatex:

    Thanks SRK ji, I got to know about it from you only. Kindly continue to tell us about new offers.

    For Filatex, I assume it may reach 140 or 139 before the buyback itself…

    Thanks again for letting me know about this jewel.

    Reply

      Sumit Jain ji,
      It has touched the price of Rs.138.45 today. Market price is likely to exceeds the BB PRICE shortly. All the best to you.

      Reply

    For Filatex:
    Not much seems to be interested in Filatex Buyback, and it may offer very good buyback %age in retail. Seeing todays closing Rs 130.40 would be considered as record price and anyone having less than 1533 shares would be considered in small share holder category.

    Experts suggest possible AR as per their guess?

    Reply

      Sumit ji,
      Though I am not an expert, I believe that the AR may hopefully be around 60% as the number of participants may not be that much larger. All the best to you,Sir. Thank you.

      Reply

        Thanks SRK ji, I got to know about it from you only. Kindly continue to tell us about new offers.

        For Filatex, I assume it may reach 140 or 139 before the buyback itself…

        Thanks again for letting me know about this jewel.

        Reply

    If anyone knows the final bidding particulars of the buyback of Mayur Uniquoters, the same may please be shared. Thank you.

    Reply

        Tiwari ji,
        Thank you for your response. I have requested for the final bidding particulars. But, you have shared the dates of the buyback. Anyway, I appreciate your kindness in responding. All the best.

        Reply

          In my case, it is 26/400. You are lucky enough. All the best n thank you.

          Reply

    @experts I’ve purchased 100@155, and looking to buy more 400 shares. I understand that if price goes below 155, it’s a good opportunity to buy more and average it out.

    But, I’m bit of confused, what strategy we should follow if price moves higher, like it’s already 161 as of writing this. Like, can I buy more 100@165, 100@170 and so on.

    I would really appreciate your views on this. And @sivaramakrishna ji, nice to see you here as well 🙂

    Reply

    Umesh Paliwal Ji & SRK ji
    Thanks for information and update. 1.28% size seems to be too small and with large gap between current price and market price, I am fearful that acceptance ratio may be max 15 -20% for retail and then the final price after may totally wiped out profit…
    I would prefer to buy at 140 or lower, if it comes before record date…

    Kindly suggest your commments.

    Reply

      Sir …in my humble opinion gail price will be above 160 after buyback….so no loss…even if it goes below 140 ,one can average it and wait to cross cmp of 156….lot of chances of gaining money is here

      Reply

      Sumit ji,
      Nothing can be ruled out. All the best, Sir. Our opinions may differ but not our relationship. Thank you very much for your kind views.

      Reply

      How the Acceptance ratio for Gail buyback for retail category for 2021 was 100 percent

      Reply

      DEAR SIR I HAVE PURCHASED 1200 SHARES OF GAIL IN 5 ACCOUNTS EACH NOW CURRENT PRICE HAS CROSSED 165 MARK , I HAVE TO SELL 50 SHARES TILL 173.9 OR 25 SHARES TILL 170 MARK. MY CALCULATION IS CORRECT OR NOT? PLS GUIDE ME

      Reply

      Today I have purchased 1000 shares @ Rs.155.20 keeping in view the BBP of Rs. 190/-. Thank you.

      Reply

    Thanks SRK ji,
    Rs 160/- provides very small incentive (8%) in this comparatively risky stock. The world Oil market is in turmoil and it can go large %age either side.
    I am not sure but still putting to buy 800nos at 149..

    Reply

    The number of investors have been increasing in many folds and hence the AR may not be that much attractive as seen in TCS. However, I still believe that this buyback will reasonably be good. I am hopeful that the Buyback price will not be less than Rs.160/-. I wish to place buy order @ Rs.148/-. Let us wait and see. All the best to all of you. Thank you.

    Reply

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