GAIL to issue bonus shares, rupee-denominated bonds

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New Delhi | Published: January 28, 2017 3:42:44 AM

The board of directors of GAIL (India) has recommended issuance of one bonus share for every three equity shares. If approved by shareholders, the the paid-up share capital of the company will rise from Rs 1,268.48 crore to Rs 1,691.30 crore.

GAIL chairman and managing director BC Tripathi in a release said the proceeds from bonds will be utilised to fund the capital expenditure plan of the company. (Reuters)GAIL chairman and managing director BC Tripathi in a release said the proceeds from bonds will be utilised to fund the capital expenditure plan of the company. (Reuters)

The board of directors of GAIL (India) has recommended issuance of one bonus share for every three equity shares. If approved by shareholders, the the paid-up share capital of the company will rise from Rs 1,268.48 crore to Rs 1,691.30 crore. Consequently, the paid-up share capital of the company will increase from R1,268.48 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% (R8.5 per equity share) on the paid-up equity share capital of the company. The government holds 56.57% stake in GAIL and the interim dividend would give it R 604.94 crore. Besides it will get dividend tax.

The record date for dividend is February 3, 2017.

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In addition, the board has also approved raising of funds through rupee-denominated bonds totalling up to R750 crore with a green shoe option of 100% through one or more tranches.

GAIL chairman and managing director BC Tripathi in a release said the proceeds from bonds will be utilised to fund the capital expenditure plan of the company.

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. Production from subsidiary Brahmaputra Cracker & Polymer Ltd’s plant in Assam is being ramped up, Tripathi said.

GAIL is looking to capture new markets for petrochemical products and has commenced exports to China, Nepal, Bangladesh, Myanmar and Vietnam.

Arm GAIL Gas is executing its flagship city gas distribution project in Bengaluru and supply of piped natural gas to households has already commenced. Further, CNG stations have been set up to cater to the needs of vehicles in the city. (With PTI inputs)

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