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Public sector undertaking GAIL India's board has approved the issuance of one bonus share for every three equity shares held. Consequently, the paid-up share capital of the company will increase from Rs 1,268.48 crore to Rs 1,691.30 crore. According to a press statement, the decision was taken by the company’s board of directors at its meeting held on January 25.
The GAIL board also approved an interim dividend and the raising of funds through Bonds. In press statement, GAIL Chairman & Managing Director, BC Tripathi said that “The decisions have been taken in order to enhance shareholders’ value and acknowledge their support to the company over the years."
Tripathi further said that work on the Jagdishpur – Haldia –Bokaro – Dhamra Pipeline Project will enter the next phase of the project in the second half of 2017. He said work on the Uttar Pradesh and Bihar sections of the Urja Ganga project has made significant progress.
Tripathi also stated that the expansion of the Petrochemical plant at Pata has stabilized. In addition, he noted that production from subsidiary Brahmaputra Cracker & Polymer Limited’s plant in Assam is being ramped up to capture new markets for its petrochemical products. GAIL has 100 per cent marketing rights to the products from the plant and has commenced exports to China, Nepal, Bangladesh, Myanmar and Vietnam according to the statement.
The board also approved payment of interim dividend for the financial year 2016-17 at the rate of 85 per cent of paid-up equity share capital of the Company (Rs 8.5 per share). The interim dividend will be paid with reference to the ‘record date’ that is, February 3, 2017 fixed for the said purpose.
The board also approved raising of funds through secured/ unsecured, redeemable, non-convertible, taxable INR bonds up to Rs 750 crore with greenshoe option up to 100 per cent of issue size aggregating up to Rs 1,500 crore on private placement basis, in one or more tranches.
The issue of the rupee bonds would fund the growing capex requirements of the Company, Tripathi said.
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