GAIL Share Price: shares of gas authority India Ltd (GAIL), rose nearly one per cent to Rs 92 on the BSE in early deals on Tuesday as the stock started trading ex-bonus a day ahead of its record date for bonus issue of equity shares.
The Company has fixed September 7, 2022 as the record date for the purpose of ensuring the eligibility of shareholders for issue of Bonus Shares. The ex-date for investors to be eligible for bonus shares is one day before the record date. Bonus shares are fully paid-up additional shares issued by a company to its existing shareholders.
India’s largest natural gas company, GAIL, announced a 1:2 bonus issue in July following its quarterly results. This means that the shareholders will receive one bonus share for every two shares they hold.
“We would like to inform that in its Board meeting held today i.e. 27th July, 2022, the Board recommended issuance of bonus shares in the ratio of 1:2, i.e. a fresh bonus of Rs.10/- each Issued equity shares. Two existing equity shares 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 August 26, 2022,” the company said in an exchange filing. was informed.
What is X-Bonus?
Ex-bonus is an important date for investors to be eligible for bonus shares. Generally, to be eligible for bonus shares, an investor must purchase shares of the company at least a day or two before the ex-date. This is due to the T+1 and T+2 settlement cycles.
On BSE, the large-cap stock GAIL is listed under ‘A’ group with a ‘T+2’ settlement cycle. Under the ‘T+2’ settlement option, the shares purchased by you will be credited to your demat account after two days.
GAIL Financial
Government-owned GAIL is a natural gas explorer and producer engaged in the processing and distribution of natural gas in India. The largest gas utility reported a 51 per cent rise in its net profit in the June quarter to Rs 3,250.9 crore as compared to Rs 2,157 crore in the year-ago period, driven by bumper margins from gas marketing. Business doubled to Rs 38,033 crore in the April-June quarter from Rs 17,702 crore a year ago.
Margins on gas marketing made up for a 12.5 percent decline in earnings from the gas transportation business and a 74 percent decline in petrochemical earnings.
Should you invest?
Earlier, in a report on August 28, ICICI Direct had given a buy call over the counter when the company discussed import of natural gas into India from Gazprom Singapore, a subsidiary of Gazprom Germany, where the Russian company has a stake. ,
India seems to be expected to benefit from this as the contracted gas will be bought at a price lower than the spot prices of LNG.
Lowering the cost of gas sourcing will be favorable for gas utilities like GAIL India and Petronet LNG as volume offtake is likely to increase for sectors like CGD, fertilisers, etc.
The brokerage advises GAIL India to take a buy call with a target price of Rs 160 per share.
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