GAIL India Ltd's board of directors will consider a share buyback on March 31, the company said in a statement.
The nation's largest gas transporter and distributor said in a stock exchange filing that its board of directors would also evaluate and approve the financial results for the quarter and the fiscal year at its meeting on March 31. "A meeting of the company's board of directors will be conducted on Thursday, March 31, 2022, to consider, among other things, the buyback of the company's fully paid-up equity shares," it stated.
Stock repurchases are seen to be a tax-effective manner of rewarding shareholders. The government controls 51.80% of the corporation and will almost certainly participate in the repurchase.
In 2020-21, GAIL conducted a share repurchase. From the share repurchase, the government earned Rs 747 crore. When a firm buys back its own shares from investors or stakeholders, it is known as a share buyback or share repurchase. It can be viewed as a tax-efficient alternative to returning money to shareholders.