GAIL (India), a state-run integrated energy company, rewarded shareholders with a bonus issue of 1:3 (one equity share for every three shares held). The company also declared an interim dividend of 85 percent, in addition to a fund-raising plan of up to Rs 1,500 crore, though the news did not lift its share price that closed 1.36 percent higher at Rs 482.
Read: ONGC joins IOC, HPCL, BPCL to declare bonus issue
"GAIL (India) Limited has recommended issuance of one bonus share for every three equity shares held of Rs 10 each fully paid up, subject to shareholders' approval. Consequently, the paid-up share capital of the company will increase from Rs. 1,268.48 crore to Rs. 1,691.30 crore," it said in its filing on Friday about the board meeting decision taken on January 25, 2017.
"The decision has been taken in order to enhance shareholders' value and acknowledge their support to the Company over the years," GAIL chairman & managing director BC Tripathi said.
The bonus issue comes after a long gap; the last bonus declaration was 1:2 in October 2008.
The record date for payment of interim dividend was fixed as February 3, 2017.
The company's board also decided to raise funds via the debt route (taxable bonds) with a green-shoe option aggregating up to Rs 1,500 crore to finance capital expenditure.
The company is also involved in smart city project in Bengaluru, via its city gas distribution works through its subsidiary GAIL Gas with supply of piped natural gas to households already commenced.
In October last year, Oil and Natural Gas Corporation (ONGC), the state-run Indian oil and gas explorer, rewarded shareholders with 1:2 bonus shares and interim dividend at 90 percent (Rs 4.50 per share).
BPCL, HPCL, IOC and Oil India had also declared bonus shares last year. Oil India declared bonus issue of 1:3 (1 share for every three shares held) in November 2016. Hindustan Petroleum Corporation Ltd. (HPCL) had declared 2:1 bonus in July, BPCL in the ratio of 1:1 in May and IOC in the ratio of 1:1 in August this year.
