GAIL Approves Issuance Of One Bonus Share For Every Three

New Delhi: State gas utility GAIL India Ltd on Wednesday approved issuance of one bonus share for every three held and an interim dividend of 85 per cent to shore up government revenues.

GAIL said in a regulatory filing that its board of directors on Wednesday "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".

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 company.

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 said its board also approved issuance of secured /unsecured, redeemable, non-convertible, taxable bonds 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 a private placement basis, in one or more tranches.

GAIL had in 2015-16 paid a total dividend of Rs 5.5 per share including an interim dividend of Rs 2.50. In the year before that, it had paid a total dividend of Rs 6 per share.