GAIL hits a new high

GAIL has been hitting new highs consistently. On 23rd Jan, it hit a new 52-week high at Rs.475, then on 25th Jan at Rs.477.50 and today at Rs.493.80.

The much anticipated bonus ratio was announced on Tuesday after market hours. It is giving one bonus share of Rs. 10/- for existing Three equity shares of Rs. 10/- each fully paid up, subject to the shareholders approval. 

The bonus apart, the company is also giving an interim dividend of 85% (Rs.8.5 per equity share) for FY17.

GAIL also has fund raising plans – the Board approved issuance of secured /unsecured, redeemable, non-convertible, taxable Bond(s) upto Rs.750 crore with green shoe option upto 100% of issue size aggregating upto Rs. 1,500 crore on a private placement basis, in one or more tranches.

The company had earlier declared a good performance for Q3FY17 with a 10% (YoY) jump in net profit at Rs.664 crore though net sales were down 10% at Rs.14,960 crore. The jump in bottomline was thanks to the improved liquefied petroleum gas transmission revenues which offset losses from the company’s petrochemicals business that suffered due to the global slump in commodity prices. Topline was hit as natural gas transmission and marketing took a beating.