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State-owned gas utility GAIL planning to raise Rs 750 crore through bonds
State-run gas marketer GAIL (India) Ltd is planning to raise Rs 750 crore in bonds via private placement to finance its ongoing projects.
The company has decided to issue non-convertible bonds of up to Rs 750 crore with an option to double the issue size via private placement in one or more tranches, GAIL said in a statement on Friday. “The issue of the rupee bonds would help in funding the growing capex requirements for the future growth of the Company,” Chairman B C Tripathi said.
The board also recommended issuance of one bonus share for every three equity shares held by shareholders. Following the issue, the paid-up share capital of the company will expand from Rs. 1,268 crore to Rs. 1,691 crore.
“The decision has been taken in order to enhance shareholders’ value and acknowledge their support to the company over the years,” Tripathi said. The last time GAIL had issued a bonus share was in October 2008.
GAIL has also decided to pay an interim dividend of Rs 8.5/share, or 85% of the paid-up equity share capital, for 2016-17. The record date for this is February 3.
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All state enterprises, especially the profitable oil companies, are facing increased demand for big dividends from the government aiming to generate enough resources to expand public spending. Mason Cole Jersey
