Gail announces bonus shares issue in 1:2 ratio
In its regulatory filing, Gail said, the board recommended the issuance of bonus shares in the ratio of 1:2 i.e. one new bonus equity share having a face value of Rs 10 each for every two existing equity shares of ₹10 each fully paid-up.
The bonus issue is now subject to the approval of the shareholders at the 38th AGM of the company to be held on 26th August 2022.
On BSE, Gail shares closed at ₹146.90 apiece up by 3% or 2.08%. The company's market valuation is around ₹64,392.14 crore.
A listed company distributes bonus shares on their equity shares to current shareholders free of charge. Through this, a shareholder can capitalise a part of the company's retained earnings for conversion of its share premium account, or distribution of treasury shares.
Also, in the AGM, the shareholders will consider a final dividend of 10% (Re 1 per equity share) on the paid-up equity share capital of the company. Gail has fixed August 2 as the record date to determine eligible shareholders for the dividend.
As of June 30, 2022, Gail has 7,75,601 shareholders with 4,38,33,99,762 fully paid-up equity shares. The government is the promoter and its operations are overseen by the Ministry of Petroleum and Natural Gas.
GAIL (India) 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 14,488 km of natural gas pipelines spread across the length and breadth of the country.