After nearly a decade, state-run gas utility GAIL India Ltd has approved issuance of bonus shares to reward shareholders.
The Board of Directors of the company in its meeting on January 25 "recommended the issuance of one bonus share of Rs 10 for existing three equity shares of Rs 10 each fully paid up, subject to the shareholders approval", GAIL said in a statement.
Consequently, the paid-up share capital of the company will increase from Rs 1,268.48 crore to Rs 1,691.30 crore.
GAIL had last issued bonus shares of one fully paid-up bonus share for every two equity shares in October 2008.
Also, it approved payment of interim dividend for the financial year 2016-17 at the rate of 85 per cent (Rs 8.5 per equity share) on the paid-up equity share capital of
The government holds 56.57 per cent of shares in GAIL and the interim dividend would give it Rs 604.94 crore. Besides it will get dividend tax.
GAIL's Board also approved raising of funds through secured/unsecured, redeemable, non-convertible, taxable rupee bonds of up to Rs 750 crore with green shoe option up to 100 per cent of issue size aggregating up to Rs 1,500 crore on private placement basis, in one or more tranches.
GAIL Chairman and Managing Director B C Tripathi said the company is issuing bonus shares for the second time after its listing on the stock exchanges. "The decision has been taken in order to enhance shareholders' value and acknowledge their support to the Company over the years," he said.
The issue of the rupee bonds would help in funding the growing capex requirements for the future growth of the company, he said.
Giving details of the projects in progress, Tripathi said that work on the prestigious Jagdishpur Haldia Bokaro Dhamra gas pipeline project, popularly called the Pradhan Mantri Urja Ganga, is going on in full swing and GAIL is committed to complete the project within scheduled time.
Work on the Uttar Pradesh and Bihar sections of the Urja Ganga project has made significant progress and the next phase of the project is likely to commence in the second half of 2017. Also, the expansion of the petrochemical plant at Pata in Uttar Pradesh has stabilised. The production from subsidiary Brahmaputra Cracker & Polymer Ltd's plant in Assam is being ramped up, he said.
HPCL, GAIL sign pact with AP for ₹40K-cr petrochem project
State-owned refiner Hindustan Petroleum Corp Ltd (HPCL) and GAIL India Ltd on Friday signed a pact with Andhra Government for setting up a Rs 40,000 crore petrochemical plant in the state. The 50:50 joint venture will set up a 1.5 million tons Ethylene Derivatives plant, which will produce a wide range of petrochemical raw materials for the manufacture of detergents, paints and coatings, cosmetics, textiles and adhesives.
"What we have signed is an MoU expressing intent for setting up the petrochemical plant," GAIL Chairman and Manging Director B C Tripathi said. Andhra government will support the project by providing infrastructure, power, roads and other clearances.