06 Sep , 2022 By : Kanchan Joshi
Shares of GAIL (India) Ltd rose nearly a per cent to ?92 apiece on the BSE in Tuesday's opening deals as the stock started trading ex-bonus, a day ahead of its record date for the bonus issue of equity shares that its board had recommended in the ratio of 1:2 in July this year.
The company has fixed Wednesday, 7th September, 2022 as the Record Date for the purpose of ascertaining the eligibility of shareholders for issuance of bonus shares. Ex-date is a day ahead of the record date for the investors to be eligible for bonus shares. Bonus shares are fully paid additional shares issued by a company to its existing shareholders.
“We wish to inform that at its Board meeting held today i.e. 27th July, 2022, the Board recommended the issuance of Bonus Shares in the ratio of 1:2 i.e. One new bonus equity share(s) of ?10/- each for every two existing equity share(s) of Rs. 10/- each fully paid up, subject to the approval of the shareholders at the 38th AGM of the company to be held on 26th August, 2022," the company had informed in an exchange filing.
Govt-owned GAIL is a natural gas explorer and producer engaged in the natural gas processing and distribution in India. The largest gas utility reported a 51% jump in its June quarter net profit on the back of bumper margins from gas marketing, at ?3,250.9 crore, as compared to ?2,157 crore in the same period a year back. Turnover more than doubled to ?38,033 crore in the April-June quarter, from ?17,702 crore a year back.
The margin on gas marketing made up for a 12.5?cline in earnings from the gas transportation business and a 74% drop in petrochemicals earnings.
Manoj Jain, Chairman & Managing Director, GAIL, said the company has successfully registered a healthy growth in the overall performance despite turbulent times in the gas business. GAIL incurred a capital expenditure of about ?1,975 crore during the quarter mainly on pipelines, petrochemicals and equity contribution to joint ventures.
He further added that to provide a thrust to the government's focused initiatives to increase the share of natural gas in the primary energy basket, the company has approved the setting up of a Small Scale LNG (SSLNG) plant on a pilot basis and orders for two small-scale liquefaction skids has been placed.