New Delhi, Mar 26: The board of state gas utility GAIL India Ltd will on March 31 consider the buyback of shares – the second buyback in as many years.
In a stock exchange filing, the nation’s top gas transporter and distributor said its board of directors, at the meeting on March 31, will also consider and approve the financial results for the quarter and the entire fiscal.
“Meeting of the board of directors of the company will be held on Thursday, 31st March 2022, to inter-alia consider buyback of the fully paid-up equity shares of the company,” it said.
Buying back shares is considered a tax-efficient way of rewarding shareholders. The government owns a 51.80 per cent stake in the company and is likely to participate in the buyback.
GAIL had done a share buyback in 2020-21. The government had received Rs 747 crore from that share buyback.
The share buyback, or share repurchase, is when a company buys back its own shares from investors or stakeholders. It can be seen as an alternative, tax-efficient way to return money to shareholders.
Buybacks are attractive in tax terms even after considering the 10 per cent tax on long term capital gains (LTCG). (PTI)
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