GAIL considers share buyback on March 31st


The board of the state gas supplier GAIL India Ltd. will consider buying back shares on March 31 – its second buyback in as many years.

In an IPO filing, the nation’s top gas transporter and distributor said its board of directors will also review and approve financial results for the quarter and full fiscal year at the March 31 meeting.

“The Company’s board of directors meeting will be held on Thursday, March 31, 2022 to, among other things, consider the repurchase of the Company’s fully paid shares,” it said.

Buying back shares is considered a tax-efficient way to reward shareholders. The government owns a 51.80% stake in the company and is likely to participate in the buyback.

GAIL had conducted a share buyback in 2020-21. The government had received £7.47 billion from this share buyback.

In stock repurchase or stock repurchase, a company repurchases its own stock from investors or stakeholders. It can be viewed as an alternative, tax-efficient way to return money to shareholders.

Buybacks are tax attractive even when factoring in the 10% Long Term Capital Gains Tax (LTCG).

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